AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2022 (11) TMI 655
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....essee in the present appeal are reproduced as under: "i. The order of the ld. CIT(A) is bad in law and is void-ab-initio. ii. The assessment order passed by the ld. AO u/s 143(3) of the Incometax Act, 1961 and sustained by the ld. CIT(A) is without jurisdiction, misconceived and without following the principles of natural justice. iii. The ld. CIT(A) has erred in dismissing the appeal as not prosecuted by the appellant, without considering the submissions in regard to the similar appeal of the appellant pending before CIT(A) for A.Y. 2013-14. iv. The ld. CIT(A) has erred in dismissing the appeal without deciding the same on merit of the case. v. The ld. CIT(A) has erred in sustaining the addition of Rs. 43,48,421/- made by the....
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.... 4.1. He pointed out from the order of ld. AO that assessee was asked to furnish the details regarding date and cost of acquisition of the shares purchased and sold for which it was stated that the share transactions were carried out through the broker M/s. Religare Securities Ltd. for which copy of ledger extracts and statement was furnished. Ld. AO noted in this respect that sale of shares of M/s. Turbotech Engineering was made through M/s. Religare Securities Ltd. with Account Code PS9735 for which he called for documentary evidence in support of Securities Transaction Tax (STT) paid by the assessee and also the evidence for purchase of shares. Ld. Counsel submitted that assessee produced the contract note in respect of the sale of shar....
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....r around 21 months, the ld. AO has recharacterized the Long Term Capital Gain on the sale of shares as income from Short Term Capital Gain and brought it to tax as against claimed exempted u/s 10(38) of the Act by the assessee. 4.4. It was also submitted by the ld. Counsel that assessee had purchased 60,000 shares out of which shares sold are 30,031 through Bombay Stock Exchange. The balance quantity of shares remained in the DMAT account of the assessee. Ld. Counsel also stated that ld. AO has verified the website of M/s. Religare Securities Ltd. and came to the conclusion that "no transaction on the said date of purchase made by the assessee". He stated that ld. AO was very well aware that the assessee has purchased the shares from M/s. ....
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.... by the ld. AO. If it is treated as Long Term Capital Gain, it is exempted u/s 10(38) of the Act and if it is considered as Short Term Capital Gain, it is subjected to tax under the Act. The relevant extracts from the order of ld. AO is reproduced as under: "During the course of assessment proceedings, it is noticed that assessee has earned an income of Rs.43,48,421/- as profit on sale of shares and claimed exemption of the entire income u/s. 10(38) of IT Act. The assessee's AR was asked to furnish the details regarding date and cost of acquisition of the shares purchased and sold. The AR has stated that the share transactions are carried out through the broker M/s. Religare Securities Limited. He has furnished copy of ledger extracts and....
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....purchased in cash however, sources of investment have not been proved. On verification of the website of stock brokers, there are no transactions on the said date of purchase made by the assessee. The assessee has stated that these shares have been purchased from recognized stock exchange through stock broker, however, as per SEBI laws, the broker is not empowered to accept cash in excess of rupees fifty thousand towards purchase. No documentary evidence have been produced by the assessee in support of her claim that shares were purchased in 2011-12. In view of the above, it is evident that the assessee has made the purchases during the year and not during the year 2011-12 and also has failed to explain the sources of investment. Cons....