2021 (6) TMI 304

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....icer received information from the Dy. Director of Income Tax (Inv.) Unit-3(2) Mumbai, vide letter dated 16.03.2018 that the assessee had traded in penny scrip M/s. Rockon Fintech (earlier known as Insutech India) with the sale value of the shares at Rs. 2,78,753/-. In view of the above, the Assessing Officer had reason to believe that the income chargeable to tax has escaped assessment within the meaning of section 147(b) of the I.T. Act. He therefore, initiated re-assessment proceedings by issuance of a notice u/s 148 and called for certain details. The Assessing Officer observed that the Director (Inv.) Kolkata carried out a country wide investigation to unearth the organized racket of generating bogus entries of Long Term Capital Gains....

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....Appeals) erred in Sustaining the said addition of Rs. 2,35,644/. towards Unexplained 1nvestment in the so called Penny Stock without going through the Written submissions made before him. (c) The learned Commissioner of income Tax (Appeals) erred in Sustaining the addition of Rs. 2,35,644/. without appreciating the fact that the Assessing Officer had show caused the figure at Rs. 2,78,753/. as information obtained from Investigation wing. 3. Any Other ground/s that may be Urged at the time of hearing". 3. The learned Counsel for the assessee submitted that the assessee is a trader in shares and he utilizes the sale consideration of one share for purchase of another share. He submitted that it is only the shares of Rockon Fintech which ....