2023 (1) TMI 1280

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....11,59,966/-. 3. Brief facts of the case are that the assessee an individual who is a Canadian Citizen of Indian Origin, had filed his/her return of income on 31.07.2012 declaring total income at Rs.41,850/-. The return was processed u/s 143(1) of the Act whereby the return of income was accepted on 09.02.213. Thereafter, the AO issued notice u/s 148 of the Act vide notice dated 31.03.2019 (time barring last date of six (6) years). The AO has resorted to re-open on the basis of report from the DDIT(Inv.) that the assessee during the year under consideration has transacted penny-stock/scrip of M/s. VAS Infrastructure Ltd. (hereinafter "M/s. VAS"). The AO noted that the assessee has traded in the scrip of M/s. VAS and has sold 12474 shares ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) wherein the assessee brought to the notice of the Ld. CIT(A) that in the year under consideration that the assessee has made a loss of Rs.1.07 crores consisting of short term capital loss of Rs.24,73,418/- and long term capital loss of Rs.82,87,928/-. Thus, total capital loss was to the tune of Rs.1,07,61,346/-. The assessee also brought to the notice of the Ld. CIT(A) that assessee's investments were handled by Professional Investment Advisor and Portfolio Manager namely M/s. Wealth Strartz Consultants Pvt. Ltd. and trading has been done through broker Shri Kantilal Chhaganlal Securities Pvt. Ltd. which is registered with BSE and ESE and filed all the documents to pr....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... invested in several blue chip companies including Reliance, Vipro etc along with M/s. VAS; and in the year under consideration has traded in the shares of M/s. VAS Infrastructure which was bought between 24.10.2010 to 03.11.2010 for Rs.10,62,216/- and sold the same between 07.04.211 to 05.12.2011 for Rs.11,55,812/- and thus made modest short term capital gain of Rs.93,597/- which was duly offered for taxation in the return of income filed on 31.07.2012. Later on, on 31.03.2019 (time barring date of six (6) years), the AO had re-opened the assessment under 147 of the Act by issuance of notice u/s 148 of the Act. The AO relying merely on the DDIT(Inv.) report and taking note of the modus- operandi resorted by certain persons indulging in con....