TaxTMI 
TaxTMI 
2026 (8) TMI 53
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.... of the draft. To be carried out forthwith. 3. This appeal is filed under Section 260A of the Income Tax Act, 1961 (for short 'the Act') by the appellant Revenue proposing the following substantial questions of law, arising out of the order dated 8th April, 2022 passed by the Income Tax Appellate Tribunal, "C" Bench, Ahmedabad (for short 'the Tribunal') in IT(SS)A No. 339/Ahd/2018 for Assessment Year 2010-11: [A] "Whether the Appellate Tribunal has erred in law and on facts in deleting the disallowance of loss of Rs. 9,50,00,000/- made by the Assessing Officer without appreciating the several findings of the Assessing Officer which show that the transaction was an accommodation entry?" [B] "Whether on the facts and in t....
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.... or Suraj Ltd., copy of Form 2 filed with ROC, copy of share certificate, statement of one Shri Shekhar G. Patel recorded under Section 131 of the Act on 25th March, 2014 and on examination of the financial performance of the said Company for the previous three years, concluded that the loss on account of sale of shares of Suraj Ltd. was artificially created. 4.3. The Assessing Officer accordingly, rejected the claim of the assessee and disallowed the loss of Rs. 9,50,00,000/- on account of sale of shares. The Assessing Officer also made disallowance under Section 14A of the Act amounting to Rs. 9,28,414/-. 4.4. Being aggrieved, the assessee preferred an Appeal before the CIT (Appeals), who held that there is no mention of any incrimi....
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....ssment Year 2009-10 is concerned, by observing as under : "8. Having gone through the impugned orders passed by the CIT (A) as well as the Appellate Tribunal, we find that during the course of scrutiny assessment, the AO by a notice dated 31.05.2011 had called upon the assessee to explain and furnish the details as regards set off of loss claimed on sale and purchase of shares during the year under consideration. The said notice was responded by the assessee vide letter dated 23.07.2011 wherein the reference was made to earlier submissions. Thus, the Assessing Officer having satisfied himself after examining the record, had accepted the loss of sale of shares as genuine and allowed set off against the income generated by the assess....
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....had contended before the Appellate Tribunal that the assessee had not furnished necessary details before the Assessing Officer at the stage of reopening proceedings. Therefore, the Assessing Officer had rightly arrived at findings about the sale and purchase transactions as not genuine transactions. In these peculiar facts, the Assessing Officer had rightly disallowed the loss claimed by the assessee under the head of loss or sale and purchase of shares. The aforesaid submission of the Revenue Department has been closely examined by the Tribunal. We find that the Appellate Tribunal has committed no error of fact to arrive at finding that the supporting evidence in the form of application for shares of the Companies, copies of share certific....
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....ribunal is right in observing that the onus has shifted on the Revenue Department to disprove the same by placing on record contrary evidence. Merely since the Companies and few purchasers have not responded to the notice issued by the Assessing Officer at the stage of reassessment cannot be a reason to discard the evidences placed by the assessee. Even otherwise we could notice that the aforesaid transactions were looked into by the Assessing Officer during the original assessment and upon due compliance of the procedure envisaged under the Act. The Assessing Officer at the stage of original assessment was satisfied about the genuineness of such share transactions and had thereafter permitted the loss claimed by the assessee towards the sh....