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Facts
The assessee claimed exemption for long-term capital gains (LTCG) on the sale of shares. The Assessing Officer (AO), relying on information from a search related to a syndicate providing accommodation entries, treated the transactions as bogus and made additions under sections 69A and 69C, which were upheld by the CIT(A).
Held
The Tribunal held that the assessee had provided sufficient documentary evidence proving the genuineness of the share transactions, including purchase and sale through registered brokers via banking channels and reflection in the Demat account. The AO failed to establish any nexus between the assessee and the alleged operator and did not conduct independent inquiries.
Key Issues
Whether the reassessment proceedings and subsequent additions for alleged bogus LTCG and commission were justified when the assessee provided documentary evidence of genuine transactions and the AO failed to establish a connection with the alleged entry provider.
Sections Cited
10(38), 69A, 69C, 147, 148
AI-generated summary — verify with the full judgment below
PER PRABHASH SHANKAR [A.M.] :- The present appeal arising from the appellate order dated 28.07.2025 is preferred by the assessee against the order passed by the Learned Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)