2021 (1) TMI 672

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....- towards the Long Term Capital Gain (LTCG). The assessee purchased 54000 shares to CCL International. According to the ld. Representative, the price of the shares were manipulated for claiming capital gain or loss. Since the assessee has not furnished any details in this regard, the Assessing Officer has taken the LTCG/Short Term Capital Gain (STCG) at Rs. 98,34,260/-. In the remand report filed before the CIT(A) during the appellate proceeding, the Assessing Officer found that there is no transaction of sale of shares during the Assessment Year 2014-15. The CIT(A) mistaken the whole capital gain of Rs. 1,99,81,750/-. According to ld. Representative, CCL International was a penny stock company therefore, the CIT(A) ought not to have allowe....

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....ises for consideration. Infact the assessee is also not claiming any capital gain or capital loss. The ld. representative for the assessee further submitted that after calling for the source for making investment for the year under consideration, the Assessing Officer accepted the explanation of the assessee. Infact, the Assessing Officer reproduced the explanation of the assessee at page-5 of his order, accepted the explanation, and there was no addition was made. Therefore, it is not correct to contend for the revenue that the source of investment was not explained. 4. The ld. representative for the assessee further submitted that the assessee sold the entire shares during the A.Y. 2015-16 and claimed exemption under section 10(38) of th....

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....o the extent of Rs. 98,34,260/- was for two A.Ys.. This fact is admitted by the Assessing Officer. In other words, the purchases of shares of CCL International by the assessee was during the A.Y. 2014-15 and 2015-16. This is very obvious from the remand report filed by the Assessing Officer before CIT(A). The scrutiny report filed by the Assessing Officer, the copy of which is produced before the ld. DR clearly reads as under: "It is correct that a sum of Rs. 98,34,260/- purchased by the assessee of the script CCL Enterprises in two A.Yrs. and sold in A.Y. 2015-16. Hence, the assessee did not have any capital loss during the year under consideration i.e. A.Y. 2014-15. As per record for the A.Y. 2015-16 assessee has declared relevant capit....