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2018 (12) TMI 576 - AT - Income TaxBogus long term capital gain - addition made towards unexplained cash credit u/s 68 - Held that:- Both the lower authorities have adopted identical line of reasoning in treating the sale consideration received on transfer of shares in STIL to be bogus thereby treating the LTCG on sale of such shares as unexplained cash credit u/s 68 of the Act. DR drew our attention to a voluminous exercise undertaken by the AO involving a long drawn process of stock market prices rigging in collusion with the various entry operators. DR drew our attention to the assessment order indicating the assessee to have allegedly invested the money in M/s TTL (since merged with STIL) not having any sound financial position or business activity so as to justify the LTCG in issue. The cases of Sumati Dayal vs. CIT (1995 (3) TMI 3 - SUPREME COURT) and CIT vs. Durga Prasad More (1971 (8) TMI 17 - SUPREME COURT) were quoted in support to plead that both the lower authorities have made it clear in their respective order(s) about the assessee having acted in collusion with various entry operators for the purpose of bogus LTCG in issue We find that the revenue did not indicate any specific evidence against the assessee in above terms qua the LTCG derived from transfer of share in STIL. We therefore adopt the above extracted reasoning mutatis mutandis to delete the impugned bogus LTCG addition. Consequently the addition made towards unexplained expenditure on account of commission also stands automatically deleted - decided in favour of assessee.
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