DCIT CC-8(2),MUMBAI, MUMBAI vs. ARTI RAKESH KATHOTIA, MUMBAI

We have heard the parties and perused the material available on record and considered the rival submissions. In the instant case, the Assessee had purchased 40,500 shares of PSIT Infrastructure and Services Limited in June 2012 at an average cost of approximately Rs.10.02 per share and had held the same for more than 08 years. Subsequently, as the trading in the said scrip had been suspended, the Assessee sold the shares on 09.03.2021 at the rate of Rs.10 per share though off market and consequently incurred a loss of Rs.2,06,047/-.

We further observe that no allegation has ever been levelled or substantiated against the Assessee by any investigation agency with regard to the transaction under consideration. Even otherwise, the Assessee has discharged the prima facie onus cast upon it under the relevant provisions of law by producing the requisite documents to substantiate the transaction, the authenticity of which has not been disputed by either of the authorities below.

Even otherwise, the Revenue had failed to bring on record any cogent material or evidence to controvert the findings recorded by the Ld. Commissioner. We also could not find any reason or material to interfere with the order of the Ld. Commissioner in deleting the addition under consideration.

Thus, considering such peculiar facts and circumstances in totality, the transaction carried out by the Assessee could not be doubted merely on the basis of suspicion and therefore had rightly been treated as genuine by the Ld. Commissioner.

Accordingly, the Revenue’s appeal stands dismissed.