Case Number: ITA 1000/DEL/2019
Assessment Year: 2015-16
Appellant: Shobha Jain, Delhi
Respondent: ITO, Ward-47(5), New Delhi
Case Filed On: 2019-02-07
Order Type: Final Tribunal Order
Date of Order: 2022-04-29
Pronounced On: 2022-04-29
This appeal, ITA No. 1000/DEL/2019, arises from the assessment year 2015-16, filed by Shobha Jain against the order dated 04.01.2019 of the Ld. CIT(A)-16, New Delhi.
The appellant, Shobha Jain, an individual deriving income from house property and other sources, filed her income tax return on 25.08.2015, declaring a total income of Rs.6,09,460/-. The case was selected for scrutiny, and statutory notices u/s 143(2)/142(1) were issued.
During the assessment proceedings, the Assessing Officer (AO) disallowed the claim u/s 10(38) of the Income Tax Act, amounting to Rs.18,81,961/-, earned from the sale of 50000 shares of M/s Kailash Auto Finance Limited. The AO also made an addition of Rs.94,099/- u/s 69C of the Act as unexplained expenditure for obtaining accommodation entries.
The AO’s decision was based on the assertion that the transactions were sham and a sophisticated device to launder black money. The AO highlighted the high returns earned by the appellant over a short period, citing unfavorable financial results of M/s Kailash Auto Finance Limited and SEBI’s findings of price manipulation.
In appeal, the Ld. CIT(A) upheld the AO’s additions. The appellant contended that she was a regular investor and trader in the capital market, providing evidence of purchase and sale through a registered broker. The appellant argued that SEBI’s subsequent findings did not implicate her in any wrongdoing and cited precedents supporting her claim of long-term capital gains.
After considering the arguments and reviewing the evidence, the Income Tax Appellate Tribunal, Delhi Bench, ‘SMC’, comprising Shri R.K. Panda, Accountant Member, allowed the appeal. The Tribunal found that the appellant’s transactions were genuine, following the principles laid down in similar cases and SEBI’s revocation of restrictions on M/s Kailash Auto Finance Ltd.
The appeal filed by Shobha Jain against the order of the Ld. CIT(A) was allowed by the Income Tax Appellate Tribunal. The additions made by the AO u/s 10(38) and 69C of the Income Tax Act were deleted, confirming the genuineness of the appellant’s claim of long-term capital gains.
Thus, the Tribunal’s order dated 29.04.2022 directed the Assessing Officer to delete the additions made in the assessment.
ITA No. 1000/DEL/2019 – Shobha Jain vs ITO, Ward-47(5), New Delhi
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