2023 (4) TMI 363

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....he Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 26.12.2016. 2. Grounds raised by the assessee are reproduced as under: "1 The Learned CIT(A) is not justified in treating the sum of Rs.2,36,94,753/as bogus loss believing on report of investigation conducted by Investigation Wing, Kolkata Via EFS module of ITD which find out that these are penny stock. As regards sale of demated shares, the sales were made in electronic plat forms of recognized stock exchanges through reputed brokers with whom various assessee are maintaining trading account. The assessee paid STT on all the transactions. The moment sales were effected, the demat accounts were debited. It is submitted for kind consideration that sale th....

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....and Dhenubuildcon should not be treated bogus and added back to the income. Mere on the basis of investigation done by Investigation Wing, Kolkata cannot be relied that assessee has claims the bogus loss. 2. The Ld. CIT(A) is not correct in disallowing investment u/s. 14A r w rule 8DD. Disallowance under section 14A of the Act should not be made when there is no exempt income earned by the assessee during the relevant previous year." 3. Brief facts of the case are that assessee is a Non-Banking Finance company (NBFC) providing financial services, trading in shares, securities and commodities. It filed its return on 30.11.2014 reporting total income of Rs.41,69,256/-. Its case was selected for scrutiny through CASS for which stat....

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....682 36040 15450 15288 5734.8 2828203 3.2. On the above share trading, Ld. AO had received a report on tax evasion through penny stocks, from the Investigation Wing, Kolkata via EFS Model of ITD for which it was reported that these three scrips have been used for accommodation entry by booking long term capital gain/loss. Being not satisfied with the explanation offered by the assessee, Ld. AO completed the assessment by disallowing the loss on trading of these scrips and added it back to the total income of the assessee. The total disallowance of loss in this respect is of Rs.2,35,76,869/-. While adding this, Ld. AO held that transaction relate to trading in these three scrips of Dhenu Buildcon Infra Ltd., Global Securitie....