Tribunal Orders New Assessment Due to Undeclared Gains and Losses in Penny Stocks; Original Assessment Lacked Proper Inquiry.

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....Assessee failed to declare Long Term Capital Loss (LTCL) on sale of shares of ECL and Long Term Capital Gain (LTCG) on sale of shares of Saya in the return of income. ECL and Saya appear to be penny stock companies. Assessee seemingly dealt in shares of these companies but did not reflect profits/losses correctly in the return. Assessing Officer (AO) failed to inquire into this aspect during assessment proceedings. Principal Commissioner of Income Tax (PCIT) erred in directing AO to assess income u/s 69A read with Section 115BBE, binding AO without independent application of mind. Assessment order is erroneous and prejudicial to Revenue's interest as AO did not examine treatment of LTCL and LTCG. AO directed to carry out de-novo assessment as per law after giving assessee opportunity of hearing. Decided against assessee by Income Tax Appellate Tribunal (ITAT).....