TaxTMI 
TaxTMI 
2024 (11) TMI 246
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.... questions of law arising out from the order dated 1st April, 2024 passed by the Income Tax Appellate Tribunal (for short "the Tribunal"), Surat in ITA No. 844/SRT/2023 for the Assessment Year 2013-14. "(i) Whether on the facts and in the circumstance of the case and in law, the Hon'ble ITAT was justified in deleting the addition of sale proceeds of the share of Rs. 3,29,400/- on account of accommodation entry u/s 68 of the Act made by the Assessing Officer arising out of sale of shares off market through Jayant Securities & Finance Ltd, a shell company and without appreciating the findings of the Assessing Officer that the said company is engaged in providing accommodation entry? ii) Whether on the facts and in the ci....
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....n of Rs. 3,29,400/- in respect of the transaction of sale of shares of Empower India Limited to Jain Securities & Finance Ltd. alleging that the assessee had carried out the bogus transactions. 3. However, the Assessee submitted that it is a regular purchase transaction in the script and for the sale of such shares the assessee had incurred long term capital loss which was not carried forward or claimed as set off by the assessee as there was no capital gain earned by the assessee. The Assessing being aggrieved preferred an appeal before the CIT (Appeals) who has confirmed the addition. 4. Being aggrieved, the assessee preferred appeal before the Tribunal, the Tribunal by the impugned order allowed the appeal observing as under:- ....
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....enuine long term capital loss of Rs.1,656/-. The assessee further submitted that the transactions are part of regular accounts and not out of any undisclosed income and, therefore, there is no question of making any addition. 11. We note that both purchase and sale of shares were through account payee cheques and demat account also used and are part of regular accounts. The assessee stated that no transaction was incurred through Sharad Darak whose statement is relied upon. We note that statement of Sharad Darak is of general nature and there is no reference of the assessee concerned. The assessee has not received any loan or benefits out of transactions carried out through Jayant Securities & Investment Ltd. We know that ....
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....see has not claimed the long term capital loss in her return of income, hence there is no loss to the revenue. Based on this factual position we find that the addition made by the assessing officer needs to be deleted hence we delete the addition. 5. Considering the above findings of fact recorded by the Tribunal it appears that the assessee had sold the part of the shares purchased on 08.02.2010 during the Financial Year 2011-12 and the balance share being 1439 were sold in the assessment year under consideration. It was also observed by the Tribunal that the respondent-assessee did not claim the long term capital loss in the computation of income and therefore, there is no loss of revenue. The bank statement submitted by the assessee d....