Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1347 - AT - Income TaxUnexplained income u/s 68 - sale proceeds of the share treated as bogus - Penny stock transactions - HELD THAT:- Addition u/s 68 of the Act made merely on the basis of suspicion, presumptions and probability of preponderance without any direct evidence to prove the transactions as non-genuine or sham or demonstrating assessee's involvement in any kind of manipulation, cannot be made. Thus, the assessee has explained and submitted evidences to prove identity, nature and source of the cash credit on account of sale proceeds credited / received in the bank account of the assessee and also furnished all evidences comprising contract notes, brokers, banking details in support of the genuineness of the transactions. The shares are sold by assessee's broker on BSE platform hence source is BSE's clearing system. The transactions on the BSE platform and settlement system who are responsible for the transactions of the demat account and prevailing price on public domain prove the genuineness of the transactions. Therefore, we deleted the addition. Addition u/s 69C - Since we have deleted the main addition u/s 68, Ground raised by the assessee for addition u/s 69C, w.r.t. notional commission expenses @ 2% of LTCG being unexplained expenditure, is consequential in nature and hence deleted. Charging of income tax @ 30% u/s 115BBE would also not survive, as we have deleted the main addition.
|