2012 (11) TMI 1231 - AT - Income Tax

Tribunal deletes addition under Section 68 for AY 2005-2006

The Tribunal allowed the appeal, deleting the addition of Rs. 1,71,615 under Section 68 of the Income Tax Act for AY 2005-2006. The Tribunal found the ... - Issues Involved: Appeal against order u/s 147 and addition u/s 68 of the Income Tax Act for AY 2005-2006.Appeal against Order u/s 147:The assessee filed an additional ground against the initiation of proceedings u/s 147, which was later dismissed as not pressed during the hearing.Addition u/s 68 - Reopening of Assessment:The assessment was reopened based on information regarding the purchase and sale of shares by the assessee. The Assessing Officer added Rs. 1,71,615 under Section 68, as the shares were purchased from a company involved in providing accommodation entries for unaccounted money, as per the statement of a director of the company.Judgment:The CIT(A) upheld the addition made by the Assessing Officer. The assessee appealed before the Tribunal, citing similar cases where the Tribunal had deleted such additions based on identical facts involving the same broker. The Tribunal found the issue to be squarely covered by previous decisions and deleted the addition of Rs. 1,71,615, following the decisions in favor of the assessee in similar cases.Conclusion:The Tribunal allowed the appeal of the assessee, deleting the addition of Rs. 1,71,615 as the facts were similar to previous cases where such additions were deleted.