TaxTMI 
TaxTMI 
2023 (10) TMI 557
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.... reads as follows: "14. (i) On the facts and circumstances of the case, the learned CIT(A) has erred in confirming the addition of Rs. 35,00,000/- under Section 68 of the Act on account of income from undisclosed sources. (ii) That the above addition has been confirmed ignoring the detailed submissions provided by the assessee." 4. The Learned Counsel submitted that on the facts and circumstances of the case, the Learned CIT(A) has erred in confirming the addition of Rs. 35,00,000/- u/s 68 of the Act on the baseless allegation of earning undisclosed income by the assessee by ignoring the detailed submissions of assessee wherein the assessee substantiated that no capital gain accrued to her as the shares acquired were sold during the relevant financial period at the same price on which the shares were acquired. Drawing our attention towards assessee's paper book page no. 254, the Learned Counsel submitted that the Learned CIT(A) after admission of additional evidence of assessee under Rule 46A of the Income Tax Rules, 1962 called remand report from the AO, which was filed on 15.03.2020. Further drawing our attention towards relevant concluding para nos. 4 & 5 of remand report (....
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....share purchaser parties confirming the transaction of purchase of share from the assessee are on record. The Learned Counsel thus submitted that despite clear remand report from the AO in favour of the assessee, the Learned CIT(A) proceeded to confirm the addition in the hands of the assessee u/s 68 of the Act which is not sustainable and thus the AO may kindly be directed to delete the addition. 7. The Learned Counsel also submitted that the Learned CIT(A) has considered irrelevant and not applicable case laws having distinct and different facts and circumstances from the present case and thus the same is not applicable in the present case against the assessee. The Learned Counsel has placed reliance on various judgments listed at serial nos.35 to 41 of the assessee paper book and submitted that when the investment in share of RNB Infrastructure Pvt. Ltd. @10 per share was not disputed by the Department in the year of acquisition of share then the same investment cannot be disputed in the year of sale at par i.e. on the same rate @10 per share merely because no capital gain was approved to the assessee. The Learned Counsel submitted that before the Learned CIT(A) the assessee sub....
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....nt to the Bank account to the appellant on the instructions of M/s. RNB Infrastructure Pvt. Ltd. Therefore, it was rightly observed the credit entry received from so called purchaser of share parties remained unexplained and thus the provision of section 68 of the Act was attracted and the AO rightly made addition in the hands of the assessee and Learned CIT(A) also quite and justified in upholding the same. Learned CIT-D.R. also drew our attention towards provision of Section 2(24)(x) r.w.s 36(1)(va) of the Act to submit that when the assessee has not successfully demonstrated investment and the genuineness of transaction of purchase of Shares from assessee then the AO is entitled to invoke the provision of Section 68 of the Act for making addition to the income of the assessee. Therefore, the Learned CIT-D.R. submitted that the ground of assessee on merits may kindly be dismissed. 10. On careful consideration of submission, first of all, we note that the Assessing Officer made addition in hands of assessee by noticing that the assessee has sold 3,50,000/- shares of RNB Infrastructure Pvt. Ltd. @10% which were acquired by the assessee at the very same price i.e. @10 per share. Th....
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....se of shares by them from RNB Leasing and Financial Services out of their disclosed sources of fund Further, in support of their explanation they have submitted copy of their bank statement, financial statements, ITR. The explanation given by assessee is substantiated by the documents submitted. 6. It is noticed that the explanation/submission now being made by the assessee was not made during the course of assessment proceedings. During the assessment proceedings ample opportunities were given to the assessee to discharge her onus to substantiate the genuineness of the transactions. However, no plausible explanation was given in this regard at that time. However, the documents now being filed before your good self and replies have also been received from various parties confirming the same Hence, the decision of considering the additional evidence may be Taken on merit by your good office." 11. When the observations of the AO, basis taken by the Learned CIT(A) for upholding the addition made by AO is evaluated on the touch stone of documentary evidences submitted by the assessee and the remand report of the AO vide dated 15.03.2022, then we safely gather that the assessee acqui....