2011 (6) TMI 873 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order deleting addition made u/s 68 of the Act for bogus entries of capital gain and brokerage.

Summary:
1. The appeal was filed by the Revenue against the CIT(A)'s order deleting the addition of Rs. 6,68,135/- & Rs. 13,363/- made u/s 68 of the Act on account of bogus entries of capital gain and brokerage without appreciating the facts of the case.
2. The Assessing Officer initiated proceedings u/s 147 against the assessee based on information received regarding accommodation entries of bogus long-term capital gain by a share broker. The AO concluded that the amount received by the assessee was income from undisclosed sources and added it u/s 68 of the Act. However, the CIT(A) deleted the addition after considering evidence provided by the assessee related to share transactions.
3. The ITAT noted that the CIT(A) rightly deleted the addition as the assessee had furnished substantial evidence to prove the purchase and sale of shares, including bills, account statements, receipts, and certificates. Enquiries by the Investigation Wing did not find any adverse findings, and the shares were listed at the stock exchange. Considering the documents and lack of evidence showing them as false, the ITAT upheld the CIT(A)'s decision to delete the addition.
4. Consequently, the appeal of the revenue was dismissed by the ITAT.