Case Number: ITA 1518/DEL/2021
Appellant: Sanjeev Agrawal, New Delhi
Respondent: ACIT, CC-15, New Delhi
Assessment Year: 2016-17
Case Filed On: 2021-10-25
Order Type: Final Tribunal Order
Date of Order: 2023-09-20
Pronounced On: 2023-09-20
The case of Sanjeev Agrawal vs. ACIT, CC-15, New Delhi pertains to the disallowance of Long Term Capital Gain (LTCG) exemption under Section 10(38) of the Income Tax Act, 1961 by the ACIT for the assessment year 2016-17. The appellant, Sanjeev Agrawal, filed his return declaring LTCG on the sale of shares of Capital Trade Links Ltd. (CTL). The Assessing Officer (AO) disallowed the exemption, treating the transactions as bogus.
The hearing for the case took place on 5th July 2023, with the final pronouncement on 20th September 2023. The appellant was represented by Shri Gautam Jain and Ms. Monika Aggarwal, while the respondent was represented by Shri Ramdhan Meena, Sr. DR.
The appellant raised several grounds of appeal, arguing that the CIT (Appeals) erred in upholding the addition made by the AO, which included a significant amount of LTCG on the sale of listed shares of CTL. The appellant contended that the shares were purchased and sold through recognized stock exchanges, with all applicable taxes paid, and the transactions were genuine.
The Tribunal, comprising Vice-President Shri Saktijit Dey and Accountant Member Shri Girish Agrawal, analyzed the submissions and material on record. The key issues and findings are summarized below:
In the final judgment, the Tribunal set aside the orders of the lower authorities and deleted the addition made towards LTCG on the sale of CTL shares. The Tribunal also deleted the enhancement of income made by the CIT(A) towards brokerage/commission as unexplained expenditure under Section 69C. The appeal filed by Sanjeev Agrawal was allowed.
In conclusion, the appeal filed by Sanjeev Agrawal against the disallowance of LTCG exemption was allowed. The Tribunal underscored the importance of substantiating claims with cogent evidence and adhering to procedural fairness in assessment proceedings.
Order Pronounced: 20th September 2023
Vice-President: Shri Saktijit Dey
Accountant Member: Shri Girish Agrawal
Note: This summary is based on the final order pronounced by the Income Tax Appellate Tribunal, Delhi Bench ‘H’, New Delhi.
Sanjeev Agrawal vs. ACIT, CC-15, New Delhi: Dispute Over Long Term Capital Gain Exemption
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