DEEPAK ANSAL AND SONS HUF,DELHI V. DEPUTY COMMISSIONER OF INCOME TAX, DELHI

ITA 6781/DEL/2025

AI Insights

The case revolves around an appeal by Deepak Ansal And Sons HUF against the order of the Commissioner of Income Tax (Appeals)-24, New Delhi, which confirmed the addition of Rs. 9,93,703/- as income under section 68 read with section 115BBE of the Income Tax Act, 1961. The addition was based on the Assessing Officer's (AO) claim that the STCG earned from the sale of shares of PMC Fincrop Ltd. was bogus. The appellant contested that the transactions were genuine, supported by bank statements and contract notes, and pointed out that a similar case involving Kushagr Ansal was accepted as genuine by the AO. The Tribunal, after reviewing the facts and the identical case, ruled in favor of the appellant, allowing the appeal and directing the deletion of the addition.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 843835 (ITAT-DELHI)
• Duration Of Justice: 4 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 28-10-2025
• Other Referred Cases: Kushagr Ansal
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KESHAV KISHORE ANAND
• Assessee Lawyers: TRAUN CHANANA
• Keywords: Set aside; Capital Gains; Earning of tax free income; Bogus
• Section: 147; 68

Judgement Text

" आयकर अपीलीय अधिकरण धिल्ली पीठ “एस एम सी”, धिल्ली श्री धिकास अिस्थी, न्याधयक सिस्य IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.6781/धिल्ली/2025 (नि.व. 2014-15) ITA No. 6781/DEL/2025 (A.Y.2014-15) Deepak Ansal And Sons HUF, Villa-B-6, Abdul kalam Road, New Delhi 110001 PAN: AADHD-5325-A ...... अपीलार्थी/Appellant बिाम Vs. Deputy Commissioner of Income Tax, 3rd Floor, Jhandewalan Extn., New Delhi 110055 ..... प्रनिवादी/Respondent अपीलार्थी द्वारा/Appellant by : Shri Traun Chanana, Advocate प्रधििािीद्वारा/Respondent by : Shri Keshav Kishore Anand, Sr. DR सुिवाई की निथर्थ/ Date of hearing : 17/12/2025 घोषणा की निथर्थ/ Date of pronouncement : 16/03/2026 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals)-24, New Delhi [in short ‘the CIT(A)’] dated 01.09.2025, for Assessment Year 2014-15. 2. Shri Tarun Chanana, appearing on behalf of the assessee submits that the solitary issue assailed by the assessee in this appeal is addition of Rs.9,93,703/- made u/s.68 r.w.s. 115BBE of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’) confirmed by the CIT(A). He submitted that the assessee has earned Short Term Capital Gain (STCG) on sale of shares of PMC Fincrop Ltd and the same was Printed from counselvise.com 2 ITA No.6781/Del/2025 (AY 2014-15) offered to tax. The Assessing Officer (AO) made addition of Rs.9,93,703/- holding STCG on sale of shares of PMC Fincrop Ltd. as bogus. The ld. Counsel asserted that the assessee has purchased shares of PMC Fincrop Ltd. Through Stock Exchange on various dates in March 2014 and sold the shares shortly thereafter in March 2014 itself. He furnished tabulated details of purchases and sales transaction of shares of PMC Fincrop Ltd. at page 35 of the paper book. He further pointed that in all the purchase and sale transaction, the assessee has not earned capital gains on some sale of shares, the assessee suffered capital loss. The net result of purchase and sale transactions of shares is STCG of Rs.9,80,238/- The ld. Counsel pointed that nowhere in the assessment order, the AO has alleged that the assessee or the broker through whom assessee has purchased/sold shares has any role in price rigging. The assessee purchased the shares through banking channel and received the sale consideration through banking channel. To substantiate his submissions, the ld. Counsel placed on record bank statement of his saving bank account with Axis Bank at page 32 & 33 of the paper book and contract notes for purchase of shares at page 36 to 48 of the paper book. Further, the ld. Counsel submits that in the case of Kushagr Ansal, the AO accepts the transaction of sale and purchase of shares of PMC Fincrop Ltd. as genuine and made no addition. The facts in the case of assessee and Kushagr Ansal are identical. In the said case as well, the AO had reopened the assessment for identical reason i.e. STCG earned by the assessee on sale of shares of PMC Fincrop Ltd. The ld. Counsel thus prayed for deleting the addition. 3. Shri Keshav Kishore Anand, representing the department vehemently defending impugned order prayed for dismissing appeal of the assessee. He Printed from counselvise.com 3 ITA No.6781/Del/2025 (AY 2014-15) submitted that the assessee has earned STCG on sale of shares of PMC Fincrop Ltd. The said company is merely a paper company and is not carrying any business activity. The said company is managed by Shri Raj Kumar Modi. In his statement recorded during the course of search u/s.132(4) of the Act, he has admitted that share prices of PMC Fincrop Ltd. were rigged to provide accommodation entry of Long/Short Term Capital Gain/Loss. 4. Both sides heard. It is an undisputed fact that during the period relevant to assessment year under appeal, the assessee sold shares of PMC Fincrop Ltd. and had earned STCG thereon. A perusal of the computation of income reveals that the assessee has offered STCG to tax. However, the assessee has set of STCG against carry forward Shot Term Capital Loss of AY 2010-11. It is further evident from computation of Income that no exempt income was claimed in respect of the said transaction. This factual position remains uncontroverted. Once the capital gain arising from sale of shares has been duly reflected in computation of income, and is offered to tax, there is no justification for making addition u/s. 68 of the Act in respect of the same transaction. The addition would result in duplication of income already offered to tax. Further, I find that in the case of Kushagr Ansal on identical set of facts the AO vide order dated 23.05.2023 passed u/s. 147 r.w.s. 144B of the Act for AY 2014- 15 has accepted STCG on sale of shares of PMC Fincrop Ltd. on the ground that the assessee has offered consideration to tax as STCG. The assessment order in the case of Kushagr Ansal is at page 76 to 79 of the paper book. In light of undisputed facts, the assessee succeeds on ground no.1 of appeal. Printed from counselvise.com 4 ITA No.6781/Del/2025 (AY 2014-15) 5. In the result, addition of Rs. Rs.9,80,238/- is directed to be deleted, the impugned order is set aside and appeal of the assessee is allowed. Order pronounced in the open court on Monday the 16th day of March, 2026. Sd/- Sd/- (VIKAS AWASTHY) न्यानयक सदस्य/JUDICIAL MEMBER धिल्ली/Delhi, ददिांक/Dated 16/03/2026 NV/- प्रतिलिपि अग्रेपििCopy of the Order forwarded to : 1. अपीलार्थी/The Appellant , 2. प्रनिवादी/ The Respondent. 3. The PCIT/CIT(A) 4. ववभागीय प्रनिनिथि, आय.अपी.अथि., दिल्ली /DR, ITAT, धिल्ली 5. गार्ड फाइल/Guard file. BY ORDER, //True Copy// (Asstt. Registrar) ITAT, DELHI Printed from counselvise.com "