TaxTMI 
TaxTMI 
2021 (8) TMI 110
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....w, the Ld. CIT(A) deleted the addition of Rs. 3,21,31,930/- being purchase of shares of penny stock Gomti Finlease (lndia) Ltd, without considering the fact that an information was received from Kolkata investigation directorate. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) failed to appreciate the fact that the Assessing Officer disallowed Rs. 6,39,240/- on account of commission paid u/s.69C being 2% of addition of Rs. 3,21,31,930/- without considering the fact that since the STCG was treated as bogus, the commission paid also stands to be disallowed. 3. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate the fact that the onus is on the assessee to ex....
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....ains earned during the year. The working of loss has been tabulated in para-4.2 of the assessment order. Upon perusal of the same, it could be seen that the assessee purchased the shares of Gomti Finlease between the period 19/12/2013 to 07/01/2014 at average price of Rs. 182/- approx. per share whereas the shares were sold on 19/02/2014 at average price of Rs. 33/- approx. per share. 3.2 The quantum of losses was found suspicious in view of the finding of Kolkata investigation wing while carrying out investigation into 84 penny stock scrips. During investigation, statement of various operators, entry-providers and stock-brokers were recorded wherein they admitted to have provided accommodation entries in the form of Long-Term Capital gain....
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.... as demat account statement showing movement of shares. The purchase as well as sale transactions took place through banking channels. The assessee denied having known Shri Nikhil Jain or Shri Bidyoot Sarkar. The assessee also demanded cross-examination of these persons in case their statement was used against the assessee as evidence. 3.5 However, rejecting all these submissions and going by the investigation findings, Ld. AO concluded that set-off of short-term capital losses could not be allowed and the amount of Rs. 321.31 Lacs as paid by the assessee towards purchase of shares was to be added back to assessee's taxable income as unexplained cash credit u/s 68 of the Act. The Ld. AO also estimated commission of 3% against these transa....
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....ischarged the onus to prove the transactions. The assessee had purchased the shares of a listed company through recognized stock broker on BSE and similarly sold the shares through recognized stock broker on BSE at the prevalent price. As regards adjustment / fluctuation in rate (Rs. 494/- to Rs. 99/-), the same was due to splitting of shares since the scrip had face value of Rs. 10/- which was split on 26/12/2013 to Rs. 2/- per share. Accordingly, the market value was reduced in that proportion. The assessee had fully discharged his onus to prove the transaction of purchase of shares including source of funds for the purchase. The assessee furnished justification for purchase of shares based on the market information that the said company....
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....cumentary evidences in support of the claim. 4.3 Finally, relying upon the decision of Hon'ble Bobay High Court in the case of CIT vs. Mukesh Ratilal Marolia (ITA 456 of 2007 dated 07/09/2011), the decision of Hon'ble Punjab & Haryana High Court in case of Pr. CIT vs. Prem Lal Gandhi (ITA No.95 of 2017 dated 18/01/2018) and the decision of Delhi Tribunal in Chander Prakash vs. ITO in (ITA No.6880/Del/2017 dated 12/03/2018), the impugned additions as well as consequential addition of estimated commission, as made by Ld.AO, was deleted. Aggrieved, the revenue is in further appeal before us. Our findings & Adjudication 5. After having gone through the findings of Ld. CIT(A) in the impugned order, the undisputed fact that emerges are that th....