Section 10(38), 68 of Income Tax Act, 1961—Addition u/s 68—In the instant case, appeals filed by different Assessee on an identical question with regard to addition under section 68, on account of claim of long term capital gains.

The AO by applying the test of human probability held that long term capital gains claimed by assessee is not genuine and falls within the ambit of Section 68.

Held that— it is clear that assessee placed sufficient documentary evidences before A.O. to prove genuineness of the transaction. I rely on the decision of Hon’ble Supreme Court in the case of Kishan Chand Chela Ram 125 ITR 713 (SC). The A.O. did not mention any fact as to how the claim of assessee was sham or bogus. The assessee thus, satisfied the conditions of Section 10(38) of the I.T. Act.
It, therefore, appears that the addition is merely made on presumption and assumptions of certain facts which are not part of the record. The issue is, therefore, covered in favor of the assessee.[SHRI AMAR NATH GOENKA, SHRI ARVIND GOENKA, SMT. PREETI YADAV, SMT. SNEHA YADAV AND SMT. POOJA YADAV VERSUS THE ACIT, CIRCLE-20 (1) , CIRCLE-20 (2) , WARD-33 (5) , NEW DELHI] [2018] [ ITAT DELHI]