TaxTMI 
TaxTMI 
2026 (7) TMI 1240
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....set aside, and the order of the AO dated 19.5.2023 passed u/s. 147 r.w.s. 144B of the Act deserves to be restored. 3. The above grounds are independent and without prejudice to one another. 4. That the appellant craves the right to add, delete amend or abandon any of the grounds at the time of or before the actual hearing of the case. 5. That on the facts of the case and in law, the Ld. CIT(A) erred in deleting the additions made by the AO u/s. 69A and 69C r.w.s. 115BBE of the Income Tax Act, 1961 amounting to Rs. 51,45,886/- without appreciating that the assessee had failed to discharge the onus of proving the genuineness of the transactions relating to penny stock scrip Mahanivesh india Limited. 6. That on facts of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs. 50,44,986/- made u/s. 69A without appreciating the fact that the shares of M/s Mahanivesh (India) Ltd. were purchased at nominal price of Rs. 1 each and sold at an average price of Rs. 507.86 i.e. 507.86 times whereas company had poor financial credentials and future income prospects at the time of investment made by the assessee. 7. That on facts of case ....
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....ndia Limited, the amount of Rs. 50,44,986/- is being treated as unexplained money u/s. 69A r.w.s. 115BBE of the Act thus the same was added to the total income of the assessee. AO further noted that since the assessee has failed to substantiate her claim of the genuineness of the transaction of sale of shares of Mahanivesh India Limited. The sale consideration of Rs. 50,44,986/- has been taken by the assessee in the form of accommodation entries. The commission expenditure was estimated @2% of total sale consideration of shares of Rs. 50,44,986/- which comes to Rs. 1,00,900/-. As the assessee has not explained the source of these expenditure incurred by her in taking these accommodation entries in her return. Thus, AO further added the unexplained commission expenditure amounting to Rs. 1,00,900/- to the total income of the assessee and assessed the total income at Rs. 53,99,226/-. 4. In first appeal, the Ld. CIT(A) deleted the additions made by the AO in the case of the present assessee namely Ritu Jain, by respectfully following its order in the case of Vipin Jain for the assessment year 2015-16. 5. Ld. Sr. DR vehemently supported the order of the Assessing Officer and reit....
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....d on 28.6.2022, however, the impugned notice u/s. 148 was issued only on 19.7.2022 i.e. after expiry of the limitation period prescribed under section 149 of the Act. Thus, the notice u/s. 148 is time barred and its consequent assessment is not valid, hence, the notice as well as assessment are hereby quashed on this count. 10. As far as second legal ground is concerned, it is noted that the notice u/s. 148 is also barred by limitation as the alleged income escaping assessment is less than Rs. 50 lacs and therefore, the extended period under section 149(1)(b) is inapplicable, resultantly, the notice issued u/s. 148 after the expiry of three years from the end of the relevant assessment year is without jurisdiction, barred by limitation and liable to be quashed alongwith all consequential proceedings. We hold and direct accordingly. 11. In so far as merits of the case is concerned, we have heard the rival contentions and perused the records. We find that Ld. CIT(A) has deleted the additions in dispute by observing as under:- "(A). Upon appeal, the ITAT ruled in favor of the assessee. Subsequently, the Revenue filed appeals before the High Court. However, the High Cour....
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....re forming an opinion that the sale transaction was sham and a pre-planned arrangement to claim exemption under the guise of LTCG. 15. An upshot of the above findings of the ITAT, coupled with the fact that no irregularity was highlighted by the Securities and Exchange Board of India pertaining to the transaction of the scrips of the Company, would lead us to the conclusion that there is nothing adverse against the respondent-assessee which could establish a fictitious LTCG to claim exemption at the behest of the respondent-assessee. Rather, the arguments put forth by the Revenue are mere findings of fact. 16. In any case, the issues raised by the Revenue in the present appeals already stand covered by the decision of this Court in the case of PCIT v. Krishna Devi [2021 SCC OnLine Del 563], wherein, under similar facts and circumstances, it was held that the preponderance of probabilities cannot be a ground to reject the evidence put forth by the parties. The relevant paragraphs of the said decision read as under: "11. On a perusal of the record, it is easily discernible that in the instant case, the AO had proceeded predominantly on the basis of the anal....
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....roach forms the reason for the learned ITAT to interfere with the findings of the lower tax authorities. The learned ITAT after considering the entire conspectus of case and the evidence brought on record, held that the Respondent had successfully discharged the initial onus cast upon it under the provisions of Section 68 of the Act. It is recorded that "There is no dispute that the shares of the two companies were purchased online, the payments have been made through banking channel, and the shares were dematerialized and the sales have been routed from de- mat account and the consideration has been received through banking channels." The above noted factors, including the deficient enquiry conducted by the AO and the lack of any independent source or evidence to show that there was an agreement between the Respondent and any other party, prevailed upon the ITAT to take a different view. Before us, Mr. Hossain has not been able to point out any evidence whatsoever to allege that money changed hands between the Respondent and the broker or any other person, or further that some person provided the entry to convert unaccounted money for getting benefit of LTCG, as alleged. In the ab....