AI Drafter 
TaxTMI 
TaxTMI 
2026 (1) TMI 299
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....refore liable to be quashed. 3. On facts and in the circumstances of the case and in law the C.I.T. (Appeals) has erred in confirming the addition made u/s. 69 of the Income Tax Act, 1961 amounting to Rs. 87,48,200/- on account of Long Term Capital Gain claimed by the appellant in respect of sale proceeds of the shares of M/s. Excel Castronics Ltd, even though all the details in respect of the same was submitted." 2. Ground No. 1, This ground raised by the assessee relates to seeking condonation of delay of 91 days in filing the present appeal. In this regard an application for seeking condonation of delay has been separately filed by the assessee, wherein it has been mentioned as under: 1] I have filed the above appeal on 24/07/2025 which was due to be filed on 20/04/2025, Thus, there is delay of 91 days. 2] I am herewith submitting an affidavit for condonation of delay narrating all the facts. 3] I therefore, in the light of the above mentioned facts submit that the delay is due to the circumstances beyond my control. Accordingly request your Honour to condone the delay and entertain my appeal. MR. ARUN KUMAR SARUP S/o Mr. ANAND SAR....
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....Collector vs MST Kitji& Others, 1987, AIR, 1353 Supreme Court Wherein it has been held that where substantial justice is pitted against technicalities of non-deliberate delay, then in that eventuality substantial justice is to be preferred. In our view, the principles of advancing substantial justice are of prime importance. Hence, considering the explanation put forth by the assessee by justifiably and properly explaining the delay, which occurred in filing the appeal and construing the expression 'Sufficient Cause' liberally, we are inclined to condone the delay in filing the appeal. Consequently, the application filed by the assessee for seeking condonation of the delay stands allowed. The appeal is admitted to be heard on merits. 5. Ground No. 2 & 3, Both these grounds raised by the assessee are interrelated and interconnected and relates to challenging the order of Ld. CIT(A) in confirming the addition made by AO u/s 69 of the Act. Therefore, we have decided to adjudicate these grounds through the present consolidated order. 6. We have heard the counsels for both the parties, perused the material placed on record, judgments cited before us and also the orders passed by t....
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....14 on Bombay Stock Exchange through Broker M/s. Pilot Capital Pvt. Ltd, which is a leading public sector stock broker at the prevalent market rates then. In support of the said sale, the assessee had furnished the following detail to the AO during the course of assessment proceedings, i. Copy of contract note ii. Copy of Bank statement iii. Copy of Demat Account iv. computation of Long term Capital Gain v. Brokers Ledger vi. Form 10DB 11. We further noticed that in none of the investigation carried out by the investigation unit, the assessee had been named as either operator or accused of converting black money into while. In fact, the assessee had only been named as beneficiary. Whereas on the contrary no other evidence except the report of the investigation wing had been relied upon by the AO and the said report itself is general in nature and is not pointing out the particular role of the assessee. Even the AO had not found any defect in the documentary evidences filed by the assessee. 12. After considering the documents placed on record, we found that the genuineness of the transaction had been clearly proved by the as....
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....bove said company are bogus in nature, the AO took the view that the long term capital gains declared by the assessee is bogus in nature and accordingly formed the belief that there is escapement of income in the hands of the assessee herein in these three years. Hence, the AO reopened the assessment of these three years under consideration by issuing notices u/s. 148 of the Act. In the reopened assessment, the AO rejected the claim of exemption u/s. 10(38) of the Act and added the following amounts to the total income of the assessee:- (Rs. ) Assessment year Amount Added 2014-15 55,37,746 2015-16 1,12,91,924 2016-17 25,80,038 The Ld CIT(A) also confirmed the above said additions and hence the assessee has filed these three appeals. 4. The Ld A.R submitted that the assessee has purchased One lakh shares of Rs. 10/- each of M/s Excel Castronics Ltd on 01-02-2012 from the company itself by paying consideration of Rs. 10.00 lakhs through banking channels. He submitted that all these shares were sold through stock exchange platform during the years relevant to AYs. 2014-15 to 2016-17. He submitted that there was stock split on 21-11-2014, i.....
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....e Bombay High Court would state that it is required to show that the assessee was also involved and part of the group which was rigging the prices of shares. Further, the AO should find deficiencies or fault in the documents furnished by the assessee in support of purchase and sale of shares. Then only, the AO could disbelieve the transactions. However, in the instant cases, the AO has simply placed his reliance on the generalized report given by the Investigation Wing and did not find fault with any of the documents furnished by the assessee. He further submitted that the AO has not shown that the assessee was part of the group allegedly manipulating the prices of shares. He submitted that the assessee has invested and sold the shares as an ordinary investor. Accordingly, he submitted that the tax authorities are not justified in disbelieving the long term capital gains declared by the assessee. 8. We heard rival contentions and perused the record. On the perusal of the documents furnished by the assessee, we notice that the copies of share certificates were not furnished by the assessee. The assessee has only furnished a copy of bank statement evidencing the payment of R....
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....set of facts, we are of the view that the claim of purchase and sale of shares cannot be doubted with, in the facts and circumstances of the case. Depending upon the actual date of allotment/purchase of shares, the capital gains earned by the assessee are required to be categorized into Short term or Long term. 12. Thus, for determining the question - whether the assessee has earned long term capital gains or short term capital gains, it is necessary to ascertain the holding period of shares, i.e., time period commencing from the date of allotment of shares and ending with the date of sale of shares needs to be found out. We noticed that the assessee has failed to prove the date of allotment/purchase. Accordingly, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to prove the date of allotment/purchase of shares. Accordingly, the orders passed by the Ld.CIT(A) in all these years are set aside and all the matters are restored to the file of the AO. The assessee is directed to furnish details regarding date of allotment/purchase of shares and on that basis, the AO may compute the capital gains either short term....