2021 (7) TMI 502

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....0.07.2019 and in ITA No. 272/CIT(A)-5/2018-19 dated 20.11.2019 for the assessment years 2011-12 & 2012-13, respectively. 2. The above assessees purchased the shares of M/s. Bakra Pratishthan Limited and M/s. Blue Prints Securities Limited, as the case may be, by cash, offline, through brokers. Subsequently, sold them, earned a huge profit of long term capital gain and claimed it as an exempt income u/s. 10(38). The Assessing Officers on the basis of the report of the investigation wing of the Revenue in Kolkata in which it came to the knowledge, inter alia, certain brokers named the shares held by these companies as penny stocks, accommodation entries were provided for claiming bogus LTCG etc and on the basis of such information/material....

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.... are not applicable to the facts of the case and upheld the action of the respective Assessing Officer to treat the entire sale proceeds of the impugned penny stock as an unexplained credits u/s. 68. Aggrieved, the respective assessee filed the above appeal with common grounds. Therefore, as a model, grounds of appeal in ITA No. 39/Chny/2020 is extracted as under: "1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous, illegal, opposed to facts and is liable to be reversed. 2. That the learned Commissioner of Income Tax (Appeals) has erred in upholding the jurisdiction of the AO to re-open the assessment u/s. 147 of the Act insofar as there is no tangible material brought on record to show the escap....

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....rd the role of the assessee in promoting the company and inflating the share price of the company. 8. The appellant craves leave for any other additional grounds that may be abused or permitted to be abused at the time of the hearing." 3. These cases were posted for hearing through video conferencing. Though the notices were served and acknowledged, which were placed in the respective record, none was present for the respective assessee. We heard the Ld. DR. The Ld. DR submitted that on the basis of information received from the Investigation Wing, Kolkata, the respective Assessing Officer reopened each of the assessment, gave an opportunity to the respective assessee to cross-examine the brokers at Kolkata, and gave a copy of t....