Additions Under Section 68 Invalid When Based on Undisclosed Investigation Reports Despite Documented Share Transactions

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....The ITAT allowed the assessee's appeal against additions made under section 68 read with section 115BBE regarding alleged bogus long-term capital gains. The Tribunal held that the AO's addition was untenable as it was based solely on an investigation report that was never shared with the assessee. The assessee had substantiated the legitimacy of the share transactions by providing evidence that shares were originally purchased in cash, physically delivered, later dematerialized, and eventually sold through proper channels with consideration received through banking channels. Following the precedent in Krishna Devi, the ITAT concluded that additions cannot be made merely on assumptions when transactions are properly documented through banking and demat accounts.....