KAMLESH P SHAH (HUF),BHAVNAGAR V. ASSISTANT COMMISSIONER OF INCOME TAX, BHAVNAGAR

ITA 380/AHD/2024

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The case involves Kamlesh P. Shah (HUF), who appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which confirmed the additions made by the Assessing Officer under Section 69A and Section 69C of the Income Tax Act, 1961. The additions were related to unexplained income from Long Term Capital Gain (LTCG) and an estimated commission assumed to be paid for accommodation entries. The assessee argued that all transactions were conducted through recognized stock exchanges and supported by valid documentary evidence. However, during the proceedings, the assessee opted for the Direct Tax Vivad Se Vishwas Scheme, 2024, leading to the withdrawal of the appeal.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 29681 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: WAGHE PRASAD RAO
• Assessee Lawyers: SARJU MEHTA
• Keywords: Reassessment proceedings; Principle of natural justice; Accommodation entries
• Section: 147; 69C; 69A

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “डी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD \u0015ी टी.आर. से\u0019\u001aल क ुमार, \u0011ाियक सद\u001c एवं \u0015ी मकरंद वसंत महादेवकर, लेखा सद\u001c क े सम\"। ] ] BEFORE SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER & SHRI MAKARAND V. MAHADEOKAR, ACCOUNTANT MEMBER आयकर अपील सं /ITA No.380/Ahd/2024 िनधा \u000fरण वष\u000f /Assessment Year : 2016-17 Kamlesh P. Shah (HUF) C/o. Riddhi Tele - Communication Balkrishna Complex Vora Bazar Bhavnagar – 364 001 बनाम/ v/s. The Assistant Commissioner of Income Tax ITO Ward-1(2) Bhavnagar \u0013थायी लेखा सं./PAN: AAHHK 6103 R (अपीलाथ%/ Appellant) (&' यथ%/ Respondent) Assessee by : Shri Sarju Mehta, AR Revenue by : Shri Waghe Prasadrao, Sr.DR सुनवाई की तारीख/Date of Hearing : 26 /02/2025 घोषणा की तारीख /Date of Pronouncement: 27 /02/2025 आदेश/O R D E R PER MAKARAND V. MAHADEOKAR, AM: The present appeal has been filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as “CIT(A)”], dated 27.12.2023, for the Assessment Year (AY) 2016-17, wherein the CIT(A) confirmed the additions made by the Assessing Officer [hereinafter referred to as “AO”] under Section 69A and Section 69C of the Income Tax Act, 1961 [hereinafter referred to as “the Act”]. ITA No.380/Ahd/2024 Kamlesh P.Shah (HUF) vs. ACIT Asst. Year : 2016-17 2 2. The AO, in the reassessment proceedings under Section 147 of the Act, made an addition of Rs.93,84,364/- under Section 69A of the Act, treating the Long Term Capital Gain (LTCG) from the sale of shares of Yamini Investment Co. Ltd. as unexplained income, on the ground that the transaction was a pre- arranged price manipulation scheme. Additionally, an estimated 5% commission of Rs.4,69,218/- was added under Section 69C of the Act, assuming the amount was paid to obtain accommodation entries. The CIT(A) upheld the additions, holding that the assessee failed to establish the genuineness of transactions and the identity of counterparties. 3. The assessee challenged the additions on the grounds that all transactions were conducted through recognized stock exchanges, supported by valid documentary evidence, including contract notes, demat account statements, and banking transactions. The assessee further contended that the AO denied cross-examination of the persons whose statements were relied upon, violating principles of natural justice. 4. During the course of hearing before us, the assessee submitted a digitally signed letter dated 21.02.2025, stating that he had opted for the Direct Tax Vivad Se Vishwas Scheme, 2024 and had received Form No. 2 from the Income Tax Authority, approving his application. The assessee also submitted the copy of challan of payment of taxes as per the scheme. The assessee, therefore, requested to withdraw the appeal pending before the Tribunal. 5. The Departmental Representative (DR) raised no objection to the withdrawal of the appeal. ITA No.380/Ahd/2024 Kamlesh P.Shah (HUF) vs. ACIT Asst. Year : 2016-17 3 6. Considering the request of the assessee and the no objection from the Revenue, we find no reason to adjudicate the matter on merits. 7. In view of the above, the appeal of the assessee is dismissed as withdrawn. pronounced in the Open Court on 27th February, 2025 at Ahmedabad. Sd/- Sd/- (T.R. SENTHIL KUMAR) JUDICIAL MEMBER (MAKARAND V. MAHADEOKAR) ACCOUNTANT MEMBER अहमदाबाद/Ahmedabad, िदनांक/Dated 27/02/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS आदेश की \"ितिलिप अ#ेिषत/Copy of the Order forwarded to : 1. अपीलाथ$ / The Appellant 2. \"%थ$ / The Respondent. 3. संबंिधत आयकर आयु& / Concerned CIT 4. आयकर आयु& ) अपील ( / The CIT(A)-(NFAC), Delhi 5. िवभागीय \"ितिनिध , अिधकरण अपीलीय आयकर , राजोकट/DR,ITAT, Ahmedabad, 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स%ािपत \"ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (word processed by Hon’ble AM in his laptop) : 26.2.2025 2. Date on which the typed draft is placed before the Dictating Member. : 26.2.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 27.2.25 7. Date on which the file goes to the Bench Clerk. : 27.2.25 8. Date on which the file goes to the Head Clerk. : 9. The date on which the file goes to the Assistant Registrar for signature on the order. : 10. Date of Despatch of the Order : "