2023 (2) TMI 81

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.... of assessment order dated 29/12/2016 u/s 143(3) of the Income Tax Act, 1961 passed by the Income Tax Officer, Ward-56(4), New Delhi (hereinafter referred to as the Assessing Officer or 'AO'). 2. The assessee filed return of income of Rs. 5,22,490/- showing long term capital gain of Rs. 68,56,408/- as exempt income u/s 10(38) of the Act. The Ld. AO taking into account certain information with him from Directorate of Investigation, Kolkata regarding bogus entries of LTCG took into consideration the modus operandi and held the long term capital gain claim of assessee to be outcome of accommodation entries and made the addition u/s 68 of the Act and further invoking section 115 BBE of the Act. 2.1 Ld. CIT(A) confirmed the same, therefore, as....

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....the assessee with the claim of not maintaining books of accounts, then no addition can be made an addition u/s 68 of the Act. In this context special reference was made to a co-ordinate Bench judgment in ITA No. 5430/Del/2011, Smt. Babbal Bhatia vs. ITO decided on 08.06.2018. Thirdly, it was submitted on behalf of the assessee that at no point of time during assessment, Ld. AO had confronted and sought response of the assessee with regard to the information which Ld. AO had relied to conclude that the LTCG claim of assessee was the outcome of any fraudulent and bogus entry operations. 4.1 On the other hand, on the basis of assessment record Ld. DR submitted that notices were duly issued and the record reflected the same. It was submitted t....