2023 (5) TMI 581 - AT - Income Tax

Undisclosed income - Bogus share transactions - case of the assessee was selected for “complete scrutiny” under CASS for examination of “suspicious sale transactions in shares (Penny Stock tab in ITS) - HELD THAT:- Once the claim of the assessee of having purchased the 3000 shares of CCL International Ltd. on the basis of documents relied upon by it fails, then, the solitary logical view that can be arrived at is that it had not carried out any genuine transaction of purchase/sale of shares, and considering the totality of the facts involved in the case can safely be held to have only obtained an accommodation entry of bogus LTCG.

We uphold the addition made by the A.O, on the ground that the same was the undisclosed fund of the assessee that was routed back in the garb of the aforesaid transaction of purchase/sale of shares. Thus, the Grounds of appeal Nos. 1 & 2 raised by the assessee dismissed.

Levy of tax u/s.115BBE - We are unable to concur with the same. As the A.O had in clear and unequivocal terms observed that the sale consideration of 3000 shares of CCL international Ltd. of Rs.5.40 lac, was infact the routing back of the undisclosed fund of the assessee through the medium of transaction of sale of shares, therefore, it can safely; or in fact inescapably be concluded that the same was the assessee’s unexplained money u/s.69A of the Act, which it had received back through banking channel in the form of sale consideration of the said shares. Thus, the Ground of appeal raised by the assessee being devoid and bereft of any merit is dismissed in terms of my aforesaid observations.