Ashok Kumar Jain vs DCIT

Parties Involved

Facts Summary

An information was received on ITBA System dated 12.03.2021 which was uploaded by DDIT (Inv.), Unit-6(3), New Delhi that assessee had obtained bogus Long Term Capital Gain (LTCG) in the scrip of M/s. Achal Investment Ltd. during the year under appeal. In view of the above information, the case of the assessee was re-opened for the year under consideration and notice u/s 148 was issued to the assessee company on 30.06.2021 after taking prior approval from Competent Authorities. Thereafter, reassessment proceedings were initiated and AO made the additions of INR 1,19,63,230/- in respect of sale transaction of penny stock of M/s Achal Investments Ltd. treated as bogus and INR 3,58,890/- in respect of commission @ 3% on INR 1,19,63,230/- is treated as unexplained expenditure. Finally, the AO assessed the income of the assessee at INR 1,37,16,250/- vide assessment order dated 26.05.2023 passed u/s 143(3)/147 of the Act.…

Legal Issues

• 1. Addition of Rs. 1,19,63,230/- u/s 68 of the Income Tax Act
• 2. Addition of Rs. 3,58,890/- u/s 69C of the Income Tax Act

Judgment Outcome

Decided in favour of Assessee.

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