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Facts
The assessee's case for AY 2018-19 was reopened under Section 147, and an addition of ₹18,60,000/- was made under Section 68 as unexplained cash credit. This addition was related to funds received from M/s Akul Multitrade Pvt. Ltd. for the sale of shares, which the assessee contended were genuine transactions for shares purchased earlier through banking channels.
Held
The Tribunal found that the assessee had purchased shares via banking channels and sold them, receiving the said amount. All evidence, including responses to Section 133(6) notices and an affidavit from M/s Akul Multitrade Pvt. Ltd. confirming the transactions, was provided. Therefore, the transactions were fully explained, and the addition was not sustainable, leading to the setting aside of the CIT(A)'s order and direction to delete the addition.
Key Issues
Whether the addition of ₹18,60,000/- as unexplained cash credit under Section 68 of the Income Tax Act was justified, given that the assessee provided comprehensive evidence explaining the share purchase and sale transactions.
Sections Cited
147, 148A(b), 148A(d), 148, 68, 133(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, KOLKATA
Before: SHRI RAJESH KUMAR, AM Shri Miraz D. Shah, AR
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 27.09.2024 for the AY 2018-19.
The only issue raised by the assessee is against the confirmation of addition of ₹18,60,000/- by the ld. CIT (A) which was made by the ld. AO u/s 68 of the Act as unexplained cash credit.
The facts in brief are that the case of the assessee was reopened u/s 147 of the Act after following the prescribed procedure provided in the Act, such as issuing notice u/s 148A(b) of the Act and after taking into account the reply of the assessee and passing the order u/s 148A(d) of the Act on 29.03.2022 and thereafter notice u/s 148 of the Act was
In the appellate proceedings, the order of the ld. AO confirmed by the ld. CIT (A) by dismissing the appeal of the assessee.
After hearing the rival contentions and perusing the materials available on record, we find that the assessee has purchased shares of M/s Cosimo Developers Pvt. Ltd. (CDPL) of ₹19 lacs on 14.02.2012, which were paid through banking channel for which the assessee has produced the copy of bank statement of IndusInd Bank from which it is evident that the assessee made payment on 14.02.2012, to purchase said shares. These shares were sold during the year to M/s Akul Multitrade Pvt. Ltd. from whom the assessee received ₹18,60,000/- in liew of these shares. We note that the assessee filed all the evidences before the ld. AO as well as before the ld. CIT (A) qua this share transactions. We also note that the notice issued u/s
In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 21.04.2025.