2023 (3) TMI 1501

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....or appropriate jurisdiction under provisions of section 148 of the Act. Thus the order of assessment is void and bad in law. 2. The Learned Commissioner of Income tax Appeals has grossly erred in passing order without understanding the fats of the case and applying his mind. Further the Learned CIT Appeal has passed the order without rebutting the submissions made by the Assessee. 3. The Learned CIT Appeal has grossly erred in passing the order observing in Para 6 Page 14, that the Assessee failed to explain the Source of the Investment. The re-opening and addition to income is on account of sale of shares and not for investment in shares. 4. The CIT Appeal and AO has made no attempt to bring in any evidence on record. They accepte....

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....cted by the Assessing Officer. The Assessing Officer observed that the assessee earned capital gain of Rs. 36,26,308/- and claimed exemption income under Section 10(38) of the Act. The prices of shares of Vas Infrastructure Ltd. for the period from 01.04.2010 to 31.03.2011 verifiable from BSE India website shows that the scrip exhibits the Penny Stock scrip and there was a report from the DDIT (Investigation), Unit-6(2), Mumbai which has stated the manipulation of prices in respect of penny stock companies. The Assessing Officer further made addition of Rs. 36,26,308/- and thereby denied exemption under Section 10(38) and audited the same under Section 68 of the Act as unaccounted cash deposit. 4. Being aggrieved by the assessment order th....

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....he investigation report has nowhere stated that the scrip of M/s. Vas Infrastructure Ltd. or any of the brokers have been black listed. In fact, the Assessing Officer as well as CIT(A) has not given any finding in respect of assessee's case as relates to fluctuation in the market related to scrip of Vas Infrastructure Ltd. The assessee purchase share online through various brokers and the payments made to brokers are reflected in the bank account. The assessee has DP accounts with all the brokers and the proof of payment was also duly filed. The Assessing Officer as well as CIT(A) has not given any detail finding as to how the assessee is dealing with penny stock. In fact, scrip of purchase and sales of M/s. Vas Infrastructure Ltd. has not ....