2022 (11) TMI 311

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....at on the facts and in the circumstances of the case and in law, the order passed by the learned Commissioner of Income Tax (Appeals) [ CIT (A) ] is bad in law and it is on the basis of conjectures and surmises. 2. That on the facts and in the circumstances of the case and in law, the CIT(A) erred in confirming the order of Assessing Officer (AO) in denying/rejecting the claim of exemption of long term capital gains of Rs.9,14,581/- in respect of shares transferred during the subject assessment year. 3. That on the facts and in the circumstances of the case and in law, the CIT(A) failed to appreciate that the shares were purchased online after payment of Security Transaction Tax and they were sold online after payment of S....

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....ings. 9. Without prejudice to the above, the statements which are recorded by DIT, Kolkata which is sought to be heavily relied upon by the AO was neither furnished to the Appellant nor was the Appellant afforded an opportunity to cross examine the deponent and as such the said statement cannot be used against the Appellant. 10. Without prejudice to the above, that on the facts and in the circumstances of the case and in law, the CIT(A) failed to appreciate that the Appellant has disclosed the entire transaction in the tax return accordingly both the share transactions cannot be treated as undisclosed income under section 68 of the Act. 11. Without prejudice to the above, the CIT(A) ought to have appreciated that ....

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....beneficiary of accommodation entries of long term capital gains by group of peoples, rejected arguments of the assessee and made addition towards consideration received for sale of shares as unexplained credit taxable u/s.68 of the Act. The assessee carried the matter in appeal before the First Appellate Authority, but could not succeeded. The Ld.CIT(A) for the reasons stated in their appellate order, sustained the additions made by the AO. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us. 4. The Ld.AR for the assessee referring to contract notes and bills submitted by the brokers submitted that purchase and sale of shares is through stock exchange. The assessee has purchased shares through Mr.Vishal Vijay Sha....

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.... unexplained cash credit taxable income u/s.68 of the Act. 6. We have heard both the parties, perused the materials available on record and gone through orders of the authorities below. There is no dispute with regard to the fact that the assessee has traded in two scrips namely M/s.NCL Research and Financial Services Ltd., and M/s.RISA International Ltd., and both companies  shares were treated as penny stock by the Income Tax Department as well as SEBI. Further, the Investigation report of Directorate of Investigation, Kolkata, reveals modus operandi of entry providers through web of companies and also entry & exit providers through stock exchange and how such transactions are benefitted to individuals and companies who traded in ....