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TMI Blog2020 (5) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... her undisclosed income found except the bogus claim of Long Term Capital Gain. Income offered by the assessee under IDS 2016 for A.Y. 2013-14 has been rightly claimed as the source of the bogus Long Term Capital Gain managed by the assessee in A.Y. 2014-15 and thus, the bogus claim of Long Term Capital Gain for A.Y. 2014-15 has been rightly explained by the assessee byway of offering undisclosed income in A.Y. 2013-14 under the Income Declaration Scheme 2016. We, thus, set aside the orders of the both lower authorities delete the addition and allow the sole ground raised by the assessee. Appeal of the assessee is allowed. - ITA No.397/Ind/2018 - - - Dated:- 26-12-2019 - Shri Kul Bharat, Judicial Member And Shri Manish Borad, Accounta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cuments relating to Capital Gain observed that no Secured Transaction Tax (STT) was paid in the bill of the broker M/s Overflow Merchandise Pvt. Ltd. Kolkata. Further the letter served to the broker was returned unserved. After making further inquiries when the Ld. AO came to conclusion that the assessee has shown bogus claim of Long Term Capital Gain to evade tax, in the meant time during the course of assessment proceedings itself assessee filed a copy of declaration made under the Income declaration Scheme 2016. As per the declaration cash income of ₹ 95,00,000/- was offered to tax for A.Y. 2013-14 and due taxes were paid as per the scheme. Assessee contended that as per the scheme assessee is eligible to claim the benefit of cash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts, the addition so made by the AO is hereby confirmed and this ground of appeal is dismissed. 5. Aggrieved assessee is now in appeal before the Tribunal. 6. Ld. counsel for the assessee vehemently argued referring to the following synopsis placed on record: The assessee has earned income amounting to ₹ 95,00,000/- from various sources in ash during the Assessment Year 2013- 14 which was not disclosed in the Income Tax Return of the year. However, the said amount was declared by the Assessee under Income Declaration Scheme, 2016 in Form no. 1 as on 30109/2016. The said amount was used in the Assessment Year 2014-15 to earn Income from Capital Gain which was exempt under section 10(38) of Income Tax Act. Further i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the assessee has already paid taxes @ 45% on such undisclosed income under IDS 2016. In view of the above, it is clear that the assessee was eligible to apply the cash in hand being undisclosed income to income which was long term capital gain of penny stocks. The addition therefore made by the Assessing Officer and confirmed by the Ld. Commissioner of Income Tax (Appeals) liable to deleted in full. 7. Per contra Ld. Departmental Representative (DR) vehemently argued supporting the order of both lower authorities. 8. We have heard rival contentions and perused the record placed before us. The sole grievance of the assessee is with regard to the finding of Ld. CIT(A) denying the benefit of income offered in IDS 2016 for A. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erm Capital Gain in next year . 10. Form No.4 is placed on page 14 of the paper book which make it clear that the assessee offered the income under IDS 2016 at ₹ 95,00,000/- in order to get the benefit for the source of income used to obtain bogus entry of Long Term Capital Gain in A.Y. 2014- 15. So in Form No.4 issued by the Department in the certificate of declaration itself the assessee s claim has been mentioned and has been accepted. 11. Now this claim of the assessee is to be tested with the contents of income declaration scheme. We find that along with Chapter 9 of the Finance Act 2016 under which the Income Declaration Scheme 2016 is provided and section 181 to section 199 of the Finance Act 2016 takes care of IDS Scheme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (s) in the assessment proceedings for subsequent assessment year(s)? Answer: As per section 189 of the Finance Act, 2016, any declaration made under the Scheme shall not affect finality of completed assessments. However, in an assessment proceeding before the Assessing Officer for an assessment year subsequent to the year for which the income is declared under the Scheme, the income declared for an earlier assessment year can be taken into account to explain the transactions provided there is a nexus between the income declared and the transactions of the subsequent assessment year. 14. From perusal of the above question and the answer given by the CBDT there remains no confusion to the extent that the income declared in earlier as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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