2020 (12) TMI 236 - AT - Income Tax

Bogus LTCG - Addition u/s 68 - HELD THAT:- The company is showing huge profits year after year starting from A.Y. 2004-05 running into crores and assessments have been completed u/s 143(3) from a.Y. 2004-05 till A.Y. 2014-15 except for A.Y. 2005-06 which is under 143(1) - AO had analysed the holding of shares of the applicant companies and had given a finding that all these companies are group companies and are directly or indirectly operated by the promoters of the assessee company. Therefore, in our view decision relied on by the ld. DR is not applicable to the facts of the present case - assessee has discharged the onus cast on it by proving the three ingredients of section 68 - Accordingly the grounds raised by the Revenue challenging the addition under section 68 of the Act for both years are dismissed.

Addition on account of income from undisclosed source - addition made by the AO on the basis of the search that has taken place under section 132 of the Act in the case of SEL Manufacturing Company and the survey conducted in the premises of the assessee subsequent to the search - HELD THAT:- A perusal of the assessment order shows that the assessee filed its return of income declaring total income - AO has not rejected the book results nor passed the order under section 144 - Since the assessee has shown income of ₹ 31,41,11,880/- which is much more than the amount of ₹ 20,24,39,341/-, therefore, such income, even if treated as bogus, has already been taxed and therefore, the addition of the same again will amount to double taxation which the ld. CIT(A) has rightly deleted. There is nothing on record to suggest that the assessee has booked any other part of expenditure in the Profit & Loss Account, therefore, we find merit in the argument of the ld. counsel that the addition is a double addition which the ld. CIT(A) has rightly deleted - Decided in favour of assessee.