TaxTMI 
TaxTMI 
2025 (8) TMI 1381
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....hown in the Export Import Data (CBEC-Export Import Data tab of ITS and purchases in P&L Account). * Mismatch in sales turnover reported in Audit Report and ITR (Form 3CD and Total Sales/Gross Receipt in Part A-P&L of ITR). * Custom duty paid as shown in the ITR is less than the Duty Paid as per Export Import Data (CBEC - Export Import Data tab of ITS and Custom duty in P & L Account of ITR). * Lower amount disallowed u/s 40(a)(ia) in ITR (Part A-OD) in comparison to audit report (Form 3CD) * Mismatch in amount paid to an employee as bonus or commission reported in Audit Report and ITR (Form 3CD and Part A-OI of ITR)." 3. Thereafter, the AO issued various notices from time to time and replies were submitted by the assessee which were placed on record. In the assessment order, it is observed by the AO that in immediately preceding year, additions were made on account of Long Term Capital Gain ("LTCG") from sale of shares of M/s. CCL International Ltd. by holding the same as penny stock script. It was further observed by the AO that during the year under appeal also, assessee has disclosed LTCG of INR 1,33,95,009/- from the sale of shares of said....
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....as not genuine as the said company did not file its return. 8. That the appellant craves leave to add, alter, amend, delete the grounds of appeal." 6. Ground of appeal No.1 raised by the assessee is general in nature. Ground of appeal Nos. 2, 3 & 5 of the assessee are not pressed hence, Grounds of appeal Nos. 2, 3 & 5 raised by the assessee are dismissed. 7. Ground of appeal No.4 is with respect to the addition of INR 2,44,20,009/- made by the AO towards the sale consideration received from the sale of shares of M/s CCL International Ltd. by holding the such sale transaction as bogus transaction. 8. Before us, Ld.AR submits that the assessee had purchased the shares of M/s CCL International Ltd. in terms of purchase bill dated 03.05.2013 which is placed at Paper Book page 2 filed by the assessee. It is submitted by Ld.AR that the payment was made through banking channel which has not been doubted by the Revenue therefore, deduction of the cost incurred by the assessee of INR 1,10,25,000/- cannot be held as unexplained money received by the assessee at the time of sale and thus, addition to this extent made by the AO and upheld by Ld.CIT(A) deserves to be deleted. ....
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....ble Delhi High Court vide order dated 07.10.2019 affirmed the order of the Tribunal which was in favour of the assessee with respect to the alleged accommodation entries from sale of shares of M/s. CCL International Ltd. He also placed reliance on the judgement of Coordinate Delhi Bench of Tribunal in the case of Gaurav Goel vs ITO in ITA No.369/Del/2019 [AY 2015-16] wherein vide order dated 03.04.2024, the Co-ordinate Bench held transaction carried out in the script of M/s. CCL International Ltd. as genuine transaction. Ld. AR accordingly, requested for the deletion of the additions made. 10. On the other hand, Ld. Sr. DR for the Revenue vehemently supported the orders of the lower authorities and submits that the assessee has failed to discharge the burden casted upon him. He further stated that the AO discussed in detail about the inquiries and investigation carried out by the Investigation Wing and therefore, the additions made by the lower authorities deserves to be upheld. Ld. Sr. DR further placed reliance on the observations made by Ld. CIT(A) in para 4.3.25 to 4.3.30 wherein Ld.CIT(A) has discussed the issue at length while confirming the additions. Accordingly, Ld. Sr.....
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....nafides of transaction and was treated as accommodation entry of sham nature. 8.1 The Hon'ble Delhi High Court in the case of Karuna Garg as well as Krishna Devi has held that an astronomical increase in the share price of a company in itself is not a justifiable ground for holding the LTCG to be an accommodation entry. 8.2 As pointed out on behalf of the assessee large number of decisions pronounced by Co-ordinate benches holds the field in favour of the assessee in respect of same scrip of 'CCL International Ltd.'. 8.3 Significantly, the Assessing Officer in another case namely 'Parth Yadav' has framed the reassessment order without making any additions on account of LTCG derived from sale of CCL Ltd. Shares despite reopening the assessment on such ground. Thus, the Revenue itself, in other case, broadly accepted the view point canvassed. 8.4 On the substratum of the company financials, the assessee has also demonstrated that CCL Ltd. is engaged in substantial business with significant turnover and fixed assets base. 8.5 In such backdrop, we are of the view that the addition is not justified based on conjecture and surmise and the asse....
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....of the price rise in the market. The ld. AO accordingly added the sale consideration received on sale of shares of CCL International Ltd as income of the assessee u/s 69 of the Act. In this regard, the ld. AR before us placed on record the annual report of CCL International Ltd in page 96 of the Paper Book which stated that the said company was established in the year 1995, is fastest growing infra-technology focused Mid Size Contracting Company in Highways Sector, fully equipped with latest German and American Road Infra Machineries with offices in Guwahati, Shillong, Tura, Aizawl and other seven sister states. The said company serves complete 360 degree requirements of Geo Survey, Soil Analysis, Engineering, Procurement & Construction need of our valuable clients and end users. The ld. AR also placed on record the Certificate of Accreditation of New / Alternative Materials / techniques technologies / equipments for adoption in the Highway Sector namely "Evocrete ST" issued to the said company by Indian Roads Congress vide letter dated 12.4.2016. The ld. AR also placed on record an award given by CSIR department, Government of India to CCL International Ltd. This goes to prove tha....
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....ence it cannot be classified as a penny stock company at all. Once it is held that this company is not a penny stock, none of the allegations leveled by the ld. AO and upheld by the ld. CIT(A) in their orders would be applicable to the said company. The ld. AR also stated that the said company is still listed in the stock exchange and is priced at Rs 30 approximately per share. Further we find that the coordinate bench of Delhi Tribunal in the case of Reeshu Goel vs ITO in ITA No. 1691/Del/2019 for Asst Year 2013-14 dated 7.10.2019 had categorically given a finding that the said company CCL International Ltd cannot be held to be a paper entity. 3.8. In view of the aforesaid observations and respectfully following the judicial precedent relied upon hereinabove, we hold that the capital gains earned by the assessee on sale of shares of CCL International Ltd is genuine and accordingly the assessee would be entitled for exemption u/s 10(38) of the Act thereon. Hence the addition made u/s 69 of the Act by the ld. AO is hereby deleted. The Ground Nos. 2 to 4 raised by the assessee are allowed. 14. Hon'ble High Court in the case of Rishu Goel (supra) has confirmed the order of....