Assistant Commissioner Of Income Tax vs Tushar Gupta

PER VIKAS AWASTHY, JM:

This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 28.11.2025, for Assessment Year 2018-19. The assessee has filed cross objections in the appeal by the Revenue.

The Revenue in appeal has assailed findings of the CIT(A), in deleting additon of Rs.9,30,671/- made u/s.68 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

Shri Manoj Kumar, representing the department submits that the assessee has obtained accommodation entry of Long-Term Capital Gain (LTCG) on sale of shares of Eicher Motors Ltd. from M/s. Life Line Securities Ltd. (Karnam Securities P. Ltd.). The Assessing Officer (AO) in a detailed order has explained the modus operandi of providing accommodation entry by M/s. Life Line Securities Ltd., initially by offering shares for sale through off market transfers and, thereafter, purchase of same shares through stock exchange. The assessee is one of the beneficiaries of accommodation entry provided by M/s. Life Line Securities Ltd. Thus, the AO has rightly made addition of bogus claim of LTCG claimed by the assessee on sale of shares of Eicher Motors Ltd. The ld. DR vehemently supporting the assessment order prayed for reversing findings of the CIT(A).

Per contra, Shri Piyush Agarwal, appearing on behalf of the respondent/assessee strongly supported the impugned order and prayed for dismissing appeal of the Revenue. The ld. AR submitted that the assessee in order to prove genuineness of the transaction of purchase of shares, furnished purchase bill and share transfer form vide which 33 shares of M/s. Eicher Motors Ltd. were transferred to the assesses on 03.08.2009. To substantiate sale of shares, the assessee furnished contract note to prove sale of shares through stock exchange payment of STT by the assessee at the time of sale of shares. The assessee has also furnished bank statement to show that the consideration was received by the assessee in his bank account. The ld. AR to further buttress his argument placed reliance on the decision of the Coordinate Bench in ITA No. 2028/Del/2025 for AY 2018-19 in the case of ACIT vs. Vishwanath Singhal decided on 17.08.2025, wherein, in similar facts addition was deleted.

Both sides heard, orders of the authorities below examined. It is an undisputed fact that the assessee during the period relevant to assessment year under appeal had sold 33 shares of M/s. Eicher Motors Ltd. though recognized stock exchange and had received sale consideration through banking channel in his bank account. The assessee has sold the shares through registered share broker and has paid STT thereon. It is not a case of transaction of penny stock. In the given undisputed facts, I find no infirmity in the order of the CIT(A), in deleting the addition u/s.68 of the Act, hence, the same is upheld and appeal of the Revenue is dismissed being devoid of any merit.

The assessee/responded has filed CO. Since, appeal of the Revenue has been dismissed, the CO has become infructuous and the same is dismissed as such.

In the result, appeal of the Revenue and CO of the assessee is dismissed.

Order pronounced in the open court on Monday the 23^rd day of March, 2026.