Dismissing the appeal of the assesee the Tribunal held that ; The assessee completed paper-trail by producing contract notes for purchase and sale of shares. of Parraneta Industries Ltd (PIL). Mere furnishing of contract notes etc does not inspire any confidence in the light of facts. Broker from whom the shares were purchased was suspended by SEBI for illegal activities .Demat account was not filed .Share price multiplied by 300 times . Commission addition which was estimated at 6% was restricted to 2% . Test of human probability applied and apparent should be ignored to unearth the harsh reality (CIT v.Sumati Dayal ( 1995) 214 ITR 801 (SC) & CIT v.Durga Prasad More (1971) 82 ITR 540 (SC) applied). Addition was confirmed on facts and the case laws relied by the representative was discussed. ( AY. 2004 -05,2005-06 , 2006-07)
Rajkumar B. Agarwal v. DCIT ( 2019) 176 DTR 273 / 199 TTJ 222(Pune )(Trib). www.itatonline.org Bharat R. Agarwal v DCIT( 2019) 176 DTR 273/199 TTJ 222 ( Pune ) (Trib).www.itatonlne.org Ameeta R.Agarwal v DCIT ( 2019) 176 DTR 273/ 199 TTJ 222( Pune ) (Trib).www.itatonlne.org
S.68: Cash credits- Undisclosed income -Bogus capital gains -Penny stocks- Mere furnishing of contract note etc does not inspire the confidence-Addition as cash credit is held to be justified – Commission addition estimated at 6% was restricted to 2% [ S.45, 48 ]