ITO, WD. 1(2)(2), RACE COURSE CIRCLE, VADODARA vs. NEETABEN SNEHALKUMAR PATEL, RACE COURSE CIRCLE, VADODARA

ITA 247/AHD/2024Status: DisposedITAT Ahmedabad03 May 2024AY 2014-15Bench: Ms. SUCHITRA RAGHUNATH KAMBLE, JUDICAL MEMBER, SHRI NARENDRA PRASAD SINHA (Accountant Member)17 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee failed to discharge the onus of proving the genuineness of the transactions. The surrounding circumstances and adverse evidence indicated that the transactions were sham and designed to introduce unaccounted money as exempt LTCG.

What were the facts?

The assessee claimed Long Term Capital Gains (LTCG) exempt under Section 10(38) on the sale of shares of M/s. Unno Industries Ltd. The Assessing Officer (AO) found that these shares were part of a penny stock scam and the transactions were suspicious. The AO treated the sale consideration as unexplained cash credit under Section 68.

What were the issues?

Whether the LTCG claimed as exempt was genuine, or if the sale consideration constituted an unexplained cash credit under Section 68 due to the suspicious nature of the transactions.

Which sections of the Income-tax Act were involved?

Section 68,Section 10(38)

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Cases cited in this judgment(4)Show list

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Income Tax Appellate Tribunal, “SMC” BENCH, AHMEDABAD

Before: & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Sunil Talati, A.R
For Respondent: Shri Sunil Talati, A.R
Hearing: 15/04/2024Pronounced: 03/05/2024

PER SHRI NARENDRA PRASAD SINHA, AM: This appeal is filed by the Revenue against the order of the National Faceless Appeal Centre, Delhi, (in short ‘the CIT(A)’) No. ITBA/NFAC/S/250/2023-24/1058831220(1) dated 18.12.2023 for the Assessment Year 2014-15 allowing the appeal of the assessee.

2.

The grounds of the appeal raised by the Revenue are as under:

"

1.

Whether on the facts and circumstances and in low, the Ld. Commissioner of Income-tax(Appeals) was justified in deleting the additio

The order continues below.

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