TaxTMI 
TaxTMI 
2021 (7) TMI 511
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....ommissioner of Income Tax (Appeals) {the CIT(A)} confirming the arbitrary, unjust and erroneous order of learned Assessing Officer (AO) is bad in law, arbitrary and unjust which requires to be reversed, cancelled and set aside. 2. The learned CIT(A) has erred in law and on the facts and in the circumstances of the case in upholding additions of Rs. 2,36,02,476/- made by learned AO under Section 68 of the Income Tax Act, 1961 (the Act). 3. The learned CIT(A) has erred in law and on the facts and in the circumstances of the case in upholding additions of Rs. 7,08,074/- made by learned AO under Section 69C of the Income Tax Act, 1961 (the Act). 4. The learned CIT(A) erred in law in calculating the Gross Tax in income....
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....term capital gains. 4.2 It transpired that the assessee earned long-term capital gains (LTCG) of Rs. 236.02 Lacs on sale of shares of an entity namely M/s Sunrise Asian Limited (SAL). The gains were claimed to be exempt u/s 10(38) of the Act. The 50000 numbers of shares of this entity were stated to be purchased by the assessee on 01/02/2012 at cost of Rs. 10 Lacs which were ultimately sold during impugned financial year for aggregate sale consideration of Rs. 246.02 Lacs giving rise to LTCG of Rs. 236.02 Lacs in the hands of the assessee. However, this scrip was alleged to be a penny stock scrip, the prices of which were allegedly rigged to generate huge profits / losses through manipulate affairs. In the investigation carried out by th....
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....sued to the assessee which were ultimately sold at abnormally high price. From trading pattern, it was observed that trades were executed with mutual understanding by placing simultaneous synchronized orders and the gains were arranged one. It was also noted that SEBI passed certain orders on the issue of manipulation of share market for providing accommodation entry of bogus LTCG. The action includes passing interim direction & suspension of trade etc. 4.5 However, the assessee, vide reply dated 26/12/2016 controverted the allegations of Ld. AO by submitting that it has duly furnished purchase & sale notes, demat account statement, Bank statement and documents relating to conversion of shares received by the assessee upon amalgamation o....
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....ay of elaborate written submissions which have already been extracted in the impugned order. Drawing attention to the documentary evidences furnished by the assessee, the assessee denied having carried out any transactions with any such operator of penny stock. It was submitted that the shares were sold through stock exchange through registered brokers. To draw strength, reliance was placed on favorable judicial pronouncements. Various other arguments were also made to assail the action of Ld. AO. 5.2 The Ld. CIT(A), in para-4, noted that there was increase in price which was almost 472 times the price prevailing at the time of purchase. The rise in share price was not in accordance with any commercial principles or market factors. Th....
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.... scrip. Considering the various judicial pronouncements as enumerated in the impugned order, the gain earned by the assessee as well as estimated commission was rightly added to the income of the assessee. Accordingly, the action of Ld.AO in making the additions was upheld. Aggrieved, the assessee is in further appeal before us. Our Adjudication 6. Having considered factual matrix as well as the orders of lower authorities, we find that the assessee has purchased certain shares of M/s STL in an off-market deal. These shares are stated to have been sold at stock exchange through registered stock broker. On the basis of the same, the assessee submits that there was no direct dealing with the purchaser of the shares. The assessee also de....