2025 (9) TMI 941 - AT - Income Tax

Appeal allowed; additions under Section 68 set aside for lack of documentary evidence linking assessee to share transfers

ITAT (Ahmedabad) allowed the appeal and set aside additions under section 68. The Revenue failed to produce documentary evidence that the assessee owned ... Addition on account of client code modification - assessee failed to prove the genuineness of these transactions - Addition u/s 68 for unexplained cash credit - HELD THAT:- Revenue could not bring anything on record by way of documentary evidence that the assessee has indeed owned the shares and transferred the same. The Revenue could not get any account of the assessee dealing with share transactions involving the shares of C Mahendra. Hence, in the absence of any material available with the Revenue Authorities about the transactions held by the assessee, in the facts and circumstances specific to the instant case, we hold that no addition is called for in the case of the assessee. Appeal of the assessee is allowed. Assessee's return for AY 2012-13 was reopened after information that he was a beneficiary of Client Code Modification (CCM) by M/s. Affluence Share & Stock Pvt. Ltd. Assessing Officer treated sale of 1,000 shares of C. Mahendra Ltd. (Rs. 2,53,000) as shifted to the assessee and made an addition as 'unexplained cash credit u/s 68'. CIT(A) confirmed the addition. Before the Tribunal the assessee contended he did not own or transact in C. Mahendra shares on the relevant date and had no dealings with the broker; Revenue produced no documentary evidence or account showing ownership or transfer by the assessee. Applying the evidentiary record to the specific facts, the Tribunal held that the Revenue 'could not bring anything on record' and, accordingly, concluded that 'no addition is called for in the case of the assessee,' allowing the appeal.