2026 (5) TMI 672

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....TBA/NFAC/S/250/2024-25/1075250428(1) dated 29.03.2025 passed by the Ld. CIT(A) u/s 250 of the Act, which is herein after referred to as the "Impugned order". The Relevant Assessment year is 2013-14 and the corresponding previous year period is from 01.04.2012 to 31.03.2013 2. Factual Matrix 2.1 That as and by way of an Assessment order made u/s 147 rws 144B of the Act, the total income of the Assessee was computed & assessed at Rs. 19,96,350/-. The total income as per the return of income was at Rs. 1,53,375/-. The addition of Rs. 18,42,978/- was made as income from undisclosed sources in guise of share transaction. The tax on total income assessed was directed to be computed. That the aforesaid "Assessment order" bears no: - ITBA/AST....

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....e transactions carried out through the penny stock. The appellant failed to establish that the transactions made through the penny stock company was genuine and it had not involved in getting accommodation entries through the penny stock company. The appellant failed to establish the credit worthiness of the penny stock company. It failed to establish that the price of the penny stock company has not been rigged up. The appellant failed to establish that exit providers are not bogus. The appellant grossly failed to prove that the statements given by the entry operators are not correct. Further, during the appellate proceeding, the Appellant could not controvert any of the findings made by the AO in the assessment order with any cogent mater....

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.... in confirming the addition of Rs. 18,42,978/- as unexplained income under section 68, ignoring the explanation and supporting documents furnished by the appellant and treating genuine Long Term Capital Gains (LTCG) as bogus LTCG on transfer of equity shares as claimed exempt income u/s 10(38) of the IT Act, by the Appellant, which is wrong and baseless. 3. Application of Section 68 and Section 115BBE: The learned CIT(A) has erred in confirming the addition of income covered u/s 68 of the IT Act being unexplained cash credit and applying the provisions of section 115BBE of the IT Act on the addition made of Rs. 18,42,978/- though the transaction considered and disclosed in return as LTCG income was duly accounted. 4. The l....

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....d. DR appearing for the revenue submitted that with regard to the "Impugned order" appropriate decision basis law be taken by this tribunal he however state that the matter should preferably be remanded back to the file of Ld. CIT(A) for De novo adjudication. Hearing was then concluded and closed. 4. Observations Findings & conclusions 4.1 We now have to decide the legality, validity and proprietary of the "impugned order" basis records of the case & the rival submission canvassed before us. 4.2 We have carefully perused the records of the case and have heard the submissions. 4.3 We basis records of the case & after hearing & upon examining the rival contentions of the Ld. AR & the Ld. DR canvassed before us are of the considere....