TaxTMI 
TaxTMI 
2026 (6) TMI 1181
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2016-17. 2. The Revenue has raised the following grounds:- "1. "Whether on facts and circumstances and in law, the Ld. CIT(A) has erred in deleting addition of Rs. 26,08,000/- u/s. 68 being accommodation entry in the form of bogus LTCG in lieu of cash, without appreciating the facts of the case?" 2. "Whether on the facts and in the circumstances of the case and in law, the ld. CIT(A) has erred in ignoring the fact that the assessee has obtained accommodation entry of bogus LTCG amounting to Rs. 19,14,000/- and Rs. 6,94,000/- through the transaction with M/s Pranatpal Tradelink Pvt. Ltd and Suramya Tradelink Pvt. Ltd. respectively durin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sidering the material available on record, deleted the impugned addition. 5. Aggrieved by the order of the Ld. CIT(A), the Revenue is now in appeal before the Tribunal. 6. Before us, the Ld. DR relied upon the assessment order and submitted that the Assessing Officer had acted on specific information emanating from a search action wherein it was found that the concerns controlled by Shri Jignesh Shah and Shri Sanjay Shah were engaged in providing accommodation entries. It was contended that the assessee was identified as a beneficiary of such accommodation entries and, therefore, the Ld. (A) was not justified in deleting the addition. 7. The Ld. AR supported the order of the Ld. CIT(A) and submitted that the addition u/s 68 of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....re as under: I find that the AO had only based his conclusions on the information received and the non-compliance of Appellant. Appellant had stated that the information was provided on 16.03.2022. In this regard, I find that the assessment order was passed on 22.03.2022. I find that AO had not done any independent enquiry or bank verifications regarding the amount alleged to have been received by the assessee. The basis of the reopening was that the accommodation entry operators did synchronised transactions in exchange and provided bogus LTCG. However, in the case of appellant there is a loss declared under Capital Gains. No capital gains or losses were seen with the companies which were unlisted. The appellant during as....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 26 ITR 775 (SC), Lalchand Bhagat Ambica Ram v. CIT [1959] 37 ITR 288 (SC), CIT v. East Coast Commercial Co. Ltd. [1967] 63 ITR 449 (SC), CIT v. Daulatram Rawatmull [1964] 53 ITR 574 (SC); and Umacharan Shaw & Bros. v. CIT [1959] 37 ITR 271 (SC); In the above decisions, it was held that suspicion cannot be treated as evidence. The AO had not done independent enquiry to trace the trail of funds linking the accommodation entry operator to the assessee. In view of the circumstances of the case, the addition of Rs. 2608000/- is deleted." 8.1 From the aforesaid findings, it is evident that the Ld. CIT(A) has examined the material available on record and recorded a categorical finding that the Asses....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and concerns which are not carrying out any genuine business activity. The above mentioned companies were also in the list. These concerns/companies are involved into activity of providing accommodation entries through Jignesh Shah and Sanjay Shah. While giving statement they are admitted the fact. Beneficiaries had been identified by analysis of data found during investigation and perusal of such data revealed that the assessee was one of such beneficiary who had taken accommodation entry." We find that the assessee has not claimed any LTCG as exempt in the return of income, rather it was a Short Term Capital Loss of Rs. 39,775/-. Since there were no evidences on record to prove that assessee had received bogus LTCG of Rs. 19,14,000/- a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....01/04/15 31/03/16 74449 73091 1358 15. HINDALCO INDUSTRIES LIMITED 3421 01/04/15 31/03/16 270685 294754 -24069 16. IDEA CELLULARLIMITED 1000 01/04/15 31/03/16 108552 106989 1564 17. INTERGLOBE AVIATION LIMITED 15 01/04/15 31/03/15 13822 11475 2337 10. INDOS IND ZANEN 250 01/04/15 31/03/16 140586 139743 843 19. INFOSYS LIMITED 775 01/04/15 31/03/16 812050 809665 2425 20. JK TYRE INDUSTRIES 100 01/04/15 31/03/15 11249 109 68 281 21. JUBILANT FOOOWORKS LIMITED 50 01/04/15 31/03/16 68153 672 66 BB7 22. LAT FINMICE HOLDING LIMITED 400 01/04/15 11/03/16 23243 22970 273 23. DR. LALERTH LABS LIMITED 20 01/04/15 31/03/16 14937 10100 4Z31 24. LARSEN 4 TOUBRO LIMITED 100 01/04/15 31/03/16 136350 136625 -275 25. MRPL 500 01/04/15 31/03/16 39....