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2020 (5) TMI 158 - AT - Income TaxAddition u/s 68 - bogus Long Term Capital Gain - HELD THAT:- No confusion to the extent that the income declared in earlier assessment year can be taken into account to explain the transactions of subsequent year provided there is a nexus between the income declared and the transaction of the subsequent assessment year. In the case of assessee for A.Y. 2013-14 cash income is offered as undisclosed income. The revenue authorities were unable to find any other source of undisclosed income for A.Y. 2013-14. Therefore, the assessee had undisclosed cash income at the end of A.Y. 2013-14 i.e. at the opening of A.Y. 2014-15. For A.Y. 2014-15 there is no other undisclosed income found except the bogus claim of Long Term Capital Gain. Income offered by the assessee under IDS 2016 for A.Y. 2013-14 has been rightly claimed as the source of the bogus Long Term Capital Gain managed by the assessee in A.Y. 2014-15 and thus, the bogus claim of Long Term Capital Gain for A.Y. 2014-15 has been rightly explained by the assessee byway of offering undisclosed income in A.Y. 2013-14 under the Income Declaration Scheme 2016. We, thus, set aside the orders of the both lower authorities delete the addition and allow the sole ground raised by the assessee. Appeal of the assessee is allowed.
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