TaxTMI 
TaxTMI 
2024 (5) TMI 1164
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.... has erred in law and on facts in confirming the action of the ld. A.O.in making addition of Rs. 57,246/- u/s 69 of the Act. (4) The appellant craves leave to add, amend, alter, modify, substitute, delete, change or vary all or any of the Ground or Grounds of appeal." 2. Brief facts of the case are that the assessee is an individual, filed his return of income for the A.Y. 2014-15 on 28/07/2014 declaring income of Rs. 3,74,750/-. The case was selected for scrutiny. During the assessment, the Assessing Officer noted that in the computation of income, the assessee has shown long term capital gain of Rs. 28,62,300/- on sale of shares of Sunrise Asian Ltd. The Assessing Officer prepared summary of sale of 6000 scrip of Sunrise Asian Ltd. in para 5.1 of his order. The Assessing Officer further noted that the assessee purchased 6000 physical shares of M/s Conart Trader's Ltd. on 02/11/2011 directly from company namely M/s Santoshima Tradelink Ltd. at the rate of Rs. 20 per share on making payment of Rs. 1.20 lacs. The shares were dematerialized by M/s Roongta Rising Stock Pvt. Ltd.. The Assessing Officer noted that M/s Conart Trader's Ltd. was amalgamated with Sunrise Asian Ltd. by ....
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.... Money Control Site. The assessee also given instances of Asian Oilfield services having share price of Rs. 114.54 of having turnover of Rs. 9.36 crores and operating loss of Rs. 20.00 crores still stock price was increasing. The assessee on the observation of Assessing Officer that scrip of Sunrise Asian Ltd. was suspended from trading on 29/11/2016, the assessee stated that such suspension was based on account of non-compliance regulation in 2016. The assessee has transacted much prior to such period. On the search and survey action by the Investigation Wing, Kolkata as referred by assessing officer, the assessee stated that he has no idea about such search or survey. The assessee has no connection with entry provider. 4. On merit, the assessee stated that the assessee purchases shares in a physical form, payments were made through account payee cheque. The physical shares were demat. Shares were sold on the floor of stock exchange through Demat account. The assessee paid security transaction tax (STT) and payment was received through account payee cheque. All evidences were furnished before the Assessing Officer. The assessee stated that the treatment of sale proceed as unexpla....
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....ntention, the assessee relied upon the decision of Hon'ble Supreme Court in Andaman Timber Industries Vs CCE (2015) 281 CTR 241 (SC) and Hon'ble Gujarat High Court in PCIT Vs Kanubhai Maganlal Patel (2017) 79 taxmann.com 257 (Guj) and CIT Vs Indrajit Singh Suri (2013) 33 taxmann.com 281 (Guj) and other decisions. It was stated that the Assessing Officer solely relied upon the statement of Anuj Agarwal, as it is a gospel truth which is not proper and justified. To support such view, the assessee relied upon various case laws. On the addition of commission payment, the assessee submitted that there is no evidence on record to substantiate such addition and reiterated that long term capital gain is genuine. 7. The ld. CIT(A) on considering the submission of assessee, confirmed the order of Assessing Officer by holding that the action of Assessing Officer is based on investigation carried out by the Investigation Wing, Kolkata on all 84 penny stock companies. The assessee failed to refute the allegation of Assessing Officer about the sudden increase in trade volumes, unusual rise in price. The ld. CIT(A) upheld both the additions. Further aggrieved, the assessee has filed pres....
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....amination of such Anuj Agarwal. 9. The ld. AR of the assessee submits that the SMC Bench of Mumbai Tribunal in Mr. Anraj Hiralal Shah (HUF) Vs ITO in ITA No. 4514/Mum/2018 dated 16/07/2019 while considering the capital gain of similar scrip i.e. Sunrise Asian Ltd. held that when sale of shares were carried out through different brokers and that such brokers were not identified as tainted broker involved in fraudulent transaction and shares were sold through Demat account, the Assessing Officer has not brought any material that assessee was a part of price rigging, capital gain declared on sale of such scrip cannot be doubted. The ld AR for the assessee submits that Jaipur Tribunal in Ashok Agarwal Vs ACIT in ITA No. 124/JP/2020, Ritu Agarwal Vs ITO in ITA No. 188/JP/2020, Seema Agarwal Vs ITO in ITA No. 185/JP/2020, Ajay Agarwal Vs ITO in ITA No. 123/JP/2020 dated 18/11/2020 also allowed relief to those assessee, wherein similar scrips of Sunrise Asian Ltd, were involved. Thus the issue raised in the present appeal is squarely covered by the aforesaid decision. The ld. AR also relied on the decision of Tribunal in Sandipkumar Parsottambhai Patel Vs ITO (2022) 137 taxmann.com 373 (....
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....urchasers are unknown as the sale of shares were through BSE. In case of Meenu Ajay Pathak, the purchases of shares were stayed by SEBI in the security market. However, in case of assessee, the business control of assessee was never doubted or barred by SEBI in security market. The transaction of assessee is much prior to transaction in case of Meenu Ajay Pathak, thus no reliance can be made on such decision. 12. I have considered the submissions of both the parties and have gone through the orders of the lower authorities carefully. I have also deliberated on various case laws relied by the ld. AR of the assessee before me as well as before the lower authorities. I find that during the assessment the assessee demanded the report of investigation wing Calcutta, but the same was not provided to the assessee. The assessee demanded the cross examination of Anuj Aggarwal, the assessing officer not allowed his cross examination. Before assessing officer filed various documents in the form of contract note of purchase, evidence of demat of shares, details of sales of share through BSE and proof of sale consideration directly received in his bank account. The assessing officer neither ma....