Income Tax Department vs Shri Vrindavan Tayal
2024 Latest Caselaw 16268 MP

Madhya Pradesh High Court

Income Tax Department vs Shri Vrindavan Tayal on 30 May, 2024

Author: Sushrut Arvind Dharmadhikari

Bench: Sushrut Arvind Dharmadhikari

                                                             1
                          IN     THE       HIGH COURT OF MADHYA PRADESH
                                                 AT INDORE
                                                 BEFORE
                          HON'BLE SHRI JUSTICE SUSHRUT ARVIND DHARMADHIKARI
                                                    &
                                 HON'BLE SHRI JUSTICE GAJENDRA SINGH
                                                 ON THE 30 th OF MAY, 2024
                                           INCOME TAX APPEAL No. 38 of 2022

                         BETWEEN:-
                         INCOME     TAX     DEPARTMENT      PRINCIPAL
                         COMMISSIONER OF INCOME TAX AAYKAR BHAWAN,
                         NEAR WHITE CHURCH (MADHYA PRADESH)

                                                                                            .....PETITIONER
                         (BY MS. VEENA MANDLIK-ADVOCATE)

                         AND
                         SHRI VRINDAVAN TAYAL PRATAPGANJ SENDHWA
                         (MADHYA PRADESH)

                                                                                         .....RESPONDENTS
                         (BY SHRI YATISH KUMAR LAAD-ADVOCATE)

                               This appeal coming on for orders this day, Justice Sushrut Arvind
                         Dharmadhikari passed the following:
                                                              ORDER

This appeal is filed by the appellant under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act of 1961') being aggrieved by the order dated 27.07.2021 passed by the Income Tax Appellate Tribunal (ITAT), Bench Indore in ITA No.242/Ind/2019 for the Assessment Year 2014

- 15 proposing following substantial question of laws in this appeal:-

1] Whether on facts and circumstances of the case, the ITAT was justified in law in deleting the addition made by AO, which was confirmed by CIT (A), ignoring the findings of Investigation Wing that M/s Life Line Drugs & Pharma Ltd. was clearly established as a bogus penny stock script

company which was used for claiming bogus Long Term Capital Gain as exempt U/s 10 (38) of the Income Tax Act, 1961 ?

2] Without prejudice to the above, on facts and within the legal spectrum of the case, the ITAT was justified in not appreciating the spirit and substance of the rest of human probabilities by ignoring the judgment of Sumati Dayal V/s CIT (1995) 80 Taxman 89 (SC) where astronomical increase in price of share and that too without any substantial business activity or profit earning apparatus ?

02. This issue came up for consideration in bunch of appeals, main case is ITA No.56 of 2021 and this Court has dismissed the appeals filed by the revenue vide common order dated 30.04.2024.

03. In view of the aforesaid, the present appeal is dismissed and the order dated 30.04.2024 passed in ITA No.56 of 2021 shall be applicable mutatis

mutandis in the facts and circumstances of the present case also.

                           (S. A. DHARMADHIKARI)                                          (GAJENDRA SINGH)
                                    JUDGE                                                      JUDGE
                         Praveen