Late Arvind Kumar Kotawal vs ACIT, Circle 70(1), New Delhi

Parties Involved

Facts Summary

The return of income for A.Y. 2014-15 was filed by the assessee / appellant on 14.07.2014, declaring total income at Rs. 38,26,220/-. The assessee was selected for scrutiny and an initial notice u/s 143(2) dated 21.09.2015 was issued and served upon the assessee through legal heirs. The assessee Arvind Kumar Kotawala expired on 05.05.2015, and his son and legal heir Manish Kumar Kotawala represented him. After the conclusion of the assessment proceedings, the Ld. AO added Rs. 93,28,200/- to the total income of the assessee. The assessee claimed Rs. 88,84,000/- as LTCG earned from the sale of shares of M/s UNNO Industries Ltd. and claimed exemption u/s 10(38). However, the Ld. AO treated this LTCG as bogus and unexplained cash credit u/s 68 and taxed it u/s 115BBE, adding Rs. 4,44,200/- as alleged commission paid to the broker.…

Legal Issues

• 1. Whether the Ld. CIT(A) erred in not quashing the order as the notice was served and assessment was made on a dead person.
• 2. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 88,84,000/- u/s 68 r.w.s. 115BBE as sale proceeds of shares by denying exemption u/s 10(38).
• 3. Whether the Ld. CIT(A) erred in confirming the addition without confronting any direct material/statement collected against the assessee.
• 4. Whether the Ld. CIT(A) erred in confirming the addition of Rs. 4,44,200/- as commission without any evidence.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Jelly Samkit Doshi Vs. ITO, Ward-1, Himatnagar

  Ahmedabad bench

• AMIT GOYAL HUF vs. INCOME TAX OFFICER

  DELHI BENCH ‘A’ : NEW DELHI benchAY 2015-16Allowed

• Ritu Patwari vs. DCIT, CC-4(4), Kolkata

  Kolkata Bench benchAY 2015-16Allowed

• NIKITA KAPOOR Vs ITO, NFAC, DELHI / ITO, WARD 54(1), NEW DELHI

• Ravi Kumar Prasad Vs ITO, Ward-48(2), Kolkata

  Kolkata Bench benchAY 2015-2016Allowed

• Arvind Bhaguji Kangane Vs DCIT, Circle – 27(1), Mumbai

  Mumbai benchAY 2016-2017Allowed