2025 (9) TMI 1490

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.... of the case, the Addl./JL.CIT (A) has erred in holding that the AO has worked out the amount of addition u/s 68 as the sum of purchase price AMD the commission expense incurred by the assessee, AMD in not appreciating the fact that the addition amount has been worked out as the difference between the sales proceeds from sale of shares of M/s First Financial Services Ltd. AMD the disclosure made under the IDS 2016. 2. On the facts AMD circumstances of the case, the Addl./Jt.CIT (A) has erred in not appreciating the fact that the entire proceeds of Rs. 2,20,67,915/- from sale of shares of M/s First Financial Services Ltd. is unexplained credits since the transaction is a sham transaction AMD the same was used as a conduit by the ass....

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....Section 147 of the Income Tax Act, 1961, with prior approval from competent authority, by way of issue of notice under Section 148 of the Income Tax Act, 1961 dated 24.03.2018 which was duly served on the assessee. In response to notice us/ 148, the assessee vide its letter dated 17.04.2018 stated that the return of income for Assessment Year 2014-15 filed u/s 139(1) of the Income Tax Act, 1961 on 29.09.2014 be considered and treated as its return of income for assessment year 2014-15 filed in response to the notice u/s 148 of the Act, 1961. The assessee filed declaration under IDS scheme which declared Rs. 2,46,90,685/- as undisclosed income and accepted as per Form No. 4 dated 10.02.2018. The gross amount received was credited which inclu....

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....e disclosed in IDS, 2016 for Rs. 2,04,90,685/-) should not be added to the total income of the assessee being treated as unexplained cash credit. The assessee except reiterating his earlier submissions that the exempt long term capital gain on sale of aforesaid penny scrip is disclosed in IDIS, no explanation submitted as to why the difference amount of Rs. 15,77,230/- shall not be added to his total income vide letter dated 14.11.2018. The assessee further explained that the assessee transferred a sum of Rs. 15,00,000/- through RTGS to FFSL on 09.03.2012 through his bankers account with Bank of Baroda, Tardeo Branch, Mumbai. FFSL vide its letter dated 15.03.2012 has communicated the assessee that 75,000/- shares were allotted. As per the l....

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....e in the IDS scheme 2016 by the assessee which is accepted fact by the assessee before the Revenue. The Ld. DR further submitted that the CIT(A) has not appreciated the fact that the entire proceeds of Rs. 2,20,67,915/- from the sale of shares of M/s. First Financial Services Ltd. is unexplained credit since the transaction is sham transaction and the same was used as conduit by the assessee to convert the unaccounted money into regular books of accounts. The Ld. DR further submitted that the Assessing Officer has restricted the addition upon the amount declared by the assessee under the IDS 2016 and has duly given the benefit of the same, while calculating the addition u/s. 68 of the Act. The addition made by the Assessing Officer was that....