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March 2023

Unaccounted income – Bogus Long Term Capital Gains – Concurrent finding of fact – No substantial question of law :

By Ajay R. Singh, Advocate
Reading Time 4 mins
23 Pr. Commissioner Of Income Tax-10 vs. M/S. Rajat Finvest & Ors[ITA NO.13 OF 2023, Date of order: 12th January, 2023, (Del.) (HC)] [Arising out of ITAT order dated 12th September, 2019 for A.Y. 2010-2011 [ITA 13/2023], A.Y. 2009-2010 [ITA 14/2023] and A.Y. 2008-2009 [ITA 15/2023]. Unaccounted income - Bogus Long Term Capital Gains – Concurrent finding of fact – No substantial question of law : The respondent/assessee is in the business of trading and investing in scrips. On 7th August, 2012, a survey was carried out by the appellant/revenue in exercise of powers under section 133A of the Income-tax Act, 1961, and according to the appellant/revenue, during investigation, the fact was revealed i.e., that the respondent/assessee had introduced unaccounted income in its books of accounts in the guise of long-term capital gains (LTCG), albeit, by first investing and then selling the shares of two entities i.e., REI Agro Ltd. [in short, “REI”] and REI Six Ten Ltd [in short, “REI Six”]. The respondent/assessee, against the LTCG, had claimed exemption from tax. It is not in dispute, that REI is a listed company, and its shares were transacted on the stock exchange. The facts also show, that during the course of the survey on 7th August, 2012, the statement of one Mr. Brij Mohan Vyas was recorded. Mr. Brij Mohan Vyas, according to the appell
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