Tribunal confirms undisclosed income, rejects capital gain claim, upholds taxation under Section 115BBE. Assessee appeals dismissed.

The Tribunal upheld the addition of Rs. 5,40,000/- as undisclosed income, rejected the claim of capital gain on sale of shares, and confirmed taxation under Section 115BBE. The appeals of the assessee were dismissed, with findings from ITA No. 190/RPR/2018 applied to related appeals (ITA Nos. 191, 192 & 193/RPR/2018).

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Issues Involved:
1. Addition of Rs. 5,40,000/- as undisclosed income.
2. Rejection of the claim of capital gain on sale of shares.
3. Taxation under Section 115BBE.

Summary:

1. Addition of Rs. 5,40,000/- as undisclosed income:
The assessee's appeal against the addition of Rs. 5,40,000/- as undisclosed income was dismissed. The AO conducted extensive verifications and concluded that the transaction of purchase/sale of shares of CCL International Ltd. was bogus. The AO re-characterized the sale proceeds of Rs. 5.40 lac as undisclosed funds of the assessee, rejecting the claim of genuine STCG of Rs. 2,81,049/-.

2. Rejection of the claim of capital gain on sale of shares:
The CIT(A) upheld the AO's decision, noting that the assessee had not carried out any genuine transaction of purchase/sale of shares but had obtained accommodation entries to route undisclosed funds. The Tribunal concurred, highlighting several discrepancies, including the impracticality of offline trading on credit, delayed payment explanations, and the peculiarities of the transactions. The Tribunal found that the assessee's claim lacked credibility and was a premeditated attempt to introduce undisclosed funds.

3. Taxation under Section 115BBE:
The Tribunal rejected the assessee's contention against the taxation of Rs. 5.40 lac under Section 115BBE. The AO had correctly classified the amount as unexplained money under Section 69A, received through the banking channel as sale consideration of shares. The Tribunal upheld this view, dismissing the assessee's appeal on this ground.

Conclusion:
The Tribunal dismissed the appeals of the assessee, upholding the addition of Rs. 5,40,000/- as undisclosed income, rejecting the claim of capital gain, and confirming the taxation under Section 115BBE. The findings in ITA No. 190/RPR/2018 were applied mutatis-mutandis to the remaining appeals (ITA Nos. 191, 192 & 193/RPR/2018).

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