TaxTMI 
TaxTMI 
2022 (3) TMI 474
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.... in law in holding that the transaction of purchase & sale of shares of M/s Radha Swami Buildcon Pvt. Ltd. on which long term capital gain of Rs. 37,78,270/- was earned in AY 2008-09 is an accommodation entry without any basis thus confirming the addition in the year under consideration even when accepting that the transaction pertain to AY 2008-09. 4.1 Apropos Ground No. 1 and 2 of the assessee, the facts as emerges from the order of the ld. CIT(A) are as under:- ''8. The appellant has raised some contentions which were made before the AO. The appellant has claimed that the data was not properly captured in the return and there were many inaccuracies in the return captured by the system. It is observed that the appellant had uploaded e-return on 26-07-2008 and it has been claimed that the same return was filed on 28-07-2008 with the AO. The AO has observed that the appellant had not filed all the paper including computation of income for the relevant year alongwith the return not filed physically / manually. As per Section 139C r.w. Rule 12 which came into force w.e.f. 01-06-2006, provided that the return of income should not be accompanied by any document or copy of a....
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....he capital account of Rs. 37,38,270 as an undisclosed income. The addition is confirmed. 12. In the result, the appeal is dismissed.'' 5. During the course of hearing, the ld.AR of the assessee submitted that the lower authorities have erred in confirming the addition of Rs. 37,78,270/- and further submitted that lower authorities have taxed the capital gain on account of sale of shares and resultantly the capital gain which had arisen in A.Y. 2008-09 and deduction claimed u/s 54of the Act. Thus the capital gain which relates to A.Y. 2008-09 cannot be taxed in A.Y. 2014-15 merely on the technical reasons. To this effect, the ld.AR has submitted following written submission. ''1. From the facts stated above the two issues arising in the present appeal is whether the amount of Rs. 37,78,270/- can be considered unexplained only because the system generated return for AY 2008-09 is not reflecting the long term capital gain and whether the amount from sale of shares on which the said gain is earned in AY 2008-09 can be treated as unexplained income for AY 2014-15. 2. It is submitted that for AY 2008-09 the assessee has e-filed the return of income on 26.07.....
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....hat data of Schedule CG of the return was not ported in the department software whereas it was filled by the assessee. (f) In Schedule CG, column B3 is showing totally blank (PB 21) whereas it was filled as under:- 3 Other assets for which option under proviso to section 112(1) not exercised a Full value of consideration 3a 4000000 b Deductions under section 48 i Cost of acquisition after indexation bi 221730 ii Cost of Improvement after indexation bii Nil iii Expenditure on transfer biii Nil iv Total (bi+bii+biii) biv 221730 c Balance (3a-biv) 3c 3778270 d Exemption under sections 54/54B/54D/54EC/54F/54G/54GA 3d 3778270 e Net balance (3c-3d) 3e Nil However, '0' is shown in Part B-TI, ....
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....tion of sale of shares and the resultant capital gain has arisen in AY 2008-09. Therefore, such capital gain which relate to AY 2008-09 cannot be taxed in AY 2014-15. Hence, for this reason alone, the addition made by AO and confirmed by Ld. CIT(A) needs to be deleted. In view of above, addition of Rs. 37,78,270/- confirmed by the Ld. CIT(A) be directed to be deleted.'' The ld.AR of the assessee further argued that the print version of ITR generated from the system perfectly shows the capital (APB 44) not only that deduction claimed u/s 54F of the Act is also reflected. Thus, there is no fault. Not only that the transaction of capital gain and is subsequent investment in A.Y. 2008-09 how can be taxed in A.Y. 2014-15 merely on the reasons that on line transaction does not show capital gain. The ld.AR of the assessee has filed an affidavit dated 24- 10-2016 placed before the AO and the ld. CIT(A) wherein she has confirmed the fact on oath about the capital gain and deduction claimed u/s 54F of the Act. She has further stated that she is assessed to tax since 1998 and since then no such behavior is observed. Not only that the transactions are duly supported by bills and ro....
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.... the long term capital of Rs. 37,78,270/- on sale of shares of Radha Swami Buildcon Pvt. Ltd. which she has claimed as deduction u/s 54F of the Act. Further the paper return was also filed with AO on 28.07.2008 in which this fact is declared in the computation. Affidavit in support of declaration of long term capital gain of Rs. 37,78,270/- and deduction claimed u/s 54F as declared in the return uploaded through software in XML file was filed at paper book page 44. 7.3 The AO, however, at Para 4 of order by just referring to the submission of assessee held that same is not acceptable and thereby treated the amount of Rs. 37,78,270/- as undisclosed income for the year under consideration and made addition for the same. 7.4 In first appeal, the ld. CIT(A) held that the assessee has failed to explain as to how the efiled return could not have captured the details of capital gain and claim of deduction u/s 54F. In fact, the data of e-filed return is showing that the long term capital gain filled up by the appellant was blank. The claim is proven to be false from the fact that the data relating to other heads of income are showing correct figures. In a computerized system driven e....