CHIRANJEE LAL,NEW DELHI vs. ITO, WARD- 65(1), NEW DELHI

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ITA 4127/DEL/2018Status: DisposedITAT Delhi17 October 2018AY 2010-114 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the assessee's claim of being cheated by an office colleague does not negate the fact that the profit was earned in his name and was not declared. Therefore, the addition is justified.

What were the facts?

The Assessing Officer noted a share transaction profit of Rs. 54,276/- which was not declared by the assessee in his return of income. The CIT(A) upheld the addition made by the AO.

What were the issues?

Whether the profit from share transactions, even if allegedly facilitated by a dishonest colleague, is taxable income of the assessee when not declared in the return.

Which sections of the Income-tax Act were involved?

Section 133(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCHES “SMC”: DELHI

Before: SHRI BHAVNESH SAINI

Hearing: 17.10.2018Pronounced: 17.10.2018

This appeal by assessee has been directed against the order of Ld. CIT(A)-21, New Delhi dated 27.03.2018 for AY 2010-11 challenging the addition of Rs. 54,276/-. The AO noted that to verify the AIR/CIB information of share transaction of Rs. 4,67,08,338/-, transaction statement with resulting profit/loss was called from M/s Karvy Stock Broking

2 ITA.No.4127/Del./2018 Ltd. u/s 133(6) of the Act. From the details/documents received from M/s Karvy Stock Broking Ltd., it revealed that resultant profit from the said share transaction was to the tune of Rs. 54,276/- but same has not been considered by assessee while furnishing his return of income. Since the assessee has not declared the said profit in his ITR, same was added to the income of assessee on account of profit from share transactions. The Ld. CIT(A) on the same reasons dismissed the appeal of the assessee.

2.

I have heard assessee in person and Ld. DR. The assessee submitted that some lady in the office of the assessee has misused the transaction and assessee has been cheated by her on the said transaction which was conducted in the name of the assessee. Therefore, no addition should be made.

This itself has no ground to delete the addition. The assessee admitted that transaction was conducted in the name of assessee by some lady of the office of the assessee which resulted into profit. Thus, the assessee earned profit from 3 ITA.No.4127/Del./2018 share transactions of Rs. 54,276/- which was not declared in the return of income. May be the assessee cheated by his colleague in the office is no ground to delete the addition. The appeal of assessee has no merit, the same is accordingly dismissed.

3.

In the result, the appeal of assessee is dismissed.

Order pronounced in the open Court.

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