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The AO framed the assessment order dt. 27th Dec., 2017 under s. 143(3) of the Act , making an addition of Rs. 1,22,76,352 under s. 68 r/w s. 115BBE and Rs. 3,06,908 under s. 69C of the Act, disallowing the STCL claimed as set-off under s. 70 of the Act, in the computation of income on the ground that it was bogus. Aggrieved by the said order, the appellant filed first appeal under s. 246A of the Act before the CIT(A). Vide order dt. 14th Jan., 2019, the said appeal of the appellant was dismissed and the additions made under ss. 68 and 69C of the Act were confirmed. In further appeal, the Tribunal confirmed the order of the CIT(A) and rejected the appeal of the assessee.

Shanti Prime Publication Pvt. Ltd.

Sec. 68, 70 & 260A of Income Tax Act, 1961— Capital gains - The assessee filed its original IT return declaring total income of Rs. 3,12,59,350 for the assessment year in question. During the previous year 2014-15 relevant to the asst. yr. 2015-16, appellant earned LTCG of Rs. 4,15,67,925 on sale of shares in unlisted companies and STCL of Rs. 1,57,23,872 out of which a sum of Rs. 1,22,76,352 related to purchase and sale of the shares. The AO framed the assessment order under s. 143(3) making an addition of Rs. 1,22,76,352 under s. 68 r/w s. 115BBE and Rs. 3,06,908 under s. 69C of the Act, disallowing the STCL claimed as set-off under s. 70 of the Act, in the computation of income on the ground that it was bogus. CIT(A) dismissed the appeal of the assessee. Thereafter, Tribunal while dismissing the appeal, agreed with the contention of the assessee that addition for STCL cannot be made under s. 68 of the Act. However, it also observed that mentioning of wrong section in the assessment order would not render the entire assessment as null and void as the AO has correctly acquired jurisdiction over the case. High dismissed the appeal of the assessee holding that “No evidence of actual sale except contract notes issued by share broker were produced by assessee”. - SANJAY KAUL V/s PR. CIT - [2020] 316 CTR 337 (DEL)