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2022 (3) TMI 474 - AT - Income TaxDeduction u/s 54F - Long term capital gain earned in AY 2008-09 on sale of shares against which deduction u/s 54F was claimed was not shown in the e-filed return by not refuting the explanation of assessee and thereby confirming the addition for the same in the year under consideration - whether CIT(A), NFAC has erred on facts and in law in holding that the transaction of purchase & sale of shares of M/s Radha Swami Buildcon Pvt. Ltd. on which long term capital gain was earned in AY 2008-09 is an accommodation entry? - CIT(A) held that the assessee has failed to explain as to how the efiled return could not have captured the details of capital gain and claim of deduction u/s 54F - HELD THAT:- In a computerized system driven environment, it is not possible that an assessee would feed something and the IT department system would capture something else - in the case of e-filed return, immediately after submitting return, the electronic copy of the return so submitted is available for download. In normal course, the appellant would have noticed from the downloaded return that the return is not showing correct information and in that case the appellant could have revised the return. This is not the case here - details of the purported transaction i.e. purchase of the shares of M/s Radha Swami Buildcon Pvt. Ltd. on 27.03.2006 for ₹ 2,00,000/- at the rate of ₹ 10/- per share and subsequent sale on 07.04.2007 for ₹ 40,00,000/- indicate that this was an accommodation entry taken by the assessee. Within a short span of holding for just one year, the shares of an unknown company had risen by 20 times. Thus, clearly the assessee had not shown the long term capital gain in the e-filed return of income for AY 2008-09 but it was claimed to have been submitted in the paper return which was not in the form specified under relevant rules. Assessee had purposely done so in order to avoid any scrutiny/ investigation of the transaction. It is therefore concluded that the assessee had not shown any such income in the return of income for AY 2008-09 which has been claimed to have been brought in the capital account for the AY 2014-15. Hence, AO is justified in treating the accretion to the capital account as an undisclosed income. Against the affidavit and copy of online ITR filed in the paper book, the ld. DR has not filed any contrary facts that the contention of the assessee are not correct. Thus, it appears that the Ld. CIT(A) has incorrectly held that this transaction of purchase & sale of shares is an accommodation entry. Thus, once the record before the lower authorities suggest that the transaction of sale of shares and the resultant capital gain has arisen in AY 2008-09, it cannot be added in the year under consideration - such capital gain which relate to AY 2008-09 cannot be taxed in AY 2014-15. Hence, for this reason alone, the addition made by AO and confirmed by Ld. CIT(A) cannot be sustained. Thus the grounds No. 1 and 2 of the assessee are allowed.
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