2025 (3) TMI 1372

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....7/11/2024 for Assessment Year 2013-14 and on 03/12/2024 for AYs 2014-15, and 2015-16. The impugned orders were emanated from the order of the Ld. Assistant Commissioner of Income-tax, Central Circle 6(3), Mumbai (in short, 'the A.O.') passed under section 143(3)read with section 147 of the Act dated 23/02/2022 for all the assessment years. 2. All the appeals have same nature of facts and also have common issue. So, ITA No.520/Mum/2025 (A.Y. 2013-14) is taken as lead case. ITA No.520/Mum/2025 (A.Y. 2013-14) 2.1 The revenue has taken the following grounds of appeal:- "1. "Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) erred in not appreciating the fact that it was established by the Assessing O....

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....om the Investigation Wing, treated the said scrip as a penny stock. In response to the show cause notice, the assessee submitted that the total trading in JRIIIL shares was limited to Rs. 27,19,277/- and that the net profit thereon was appropriately disclosed in the return of income. The assessee further contended that no long-term or short-term capital gains had been claimed in respect of the said scrip.The Ld. AO, relying on information received from the Investigation Wing, concluded that the price of JRIIIL shares had been artificially rigged to manipulate share prices and facilitate beneficiaries in claiming exemptions on long-term capital gains. Upon analyzing the financials of JRIIIL, the Ld. AO made an addition of Rs. 27,19,277/-, tr....

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....onsequently result in a loss, which would then be adjustable against the addition made. Therefore, the entire exercise would ultimately be tax neutral. In support of this contention, the Ld. AR respectfully relied on the decision of the ITAT, Mumbai Bench "A" in Aadesh Commodities Pvt. Ltd. v. National Faceless Assessment Centre, Delhi, ITA No. 3959/Mum/2023, Order dated 19/08/2024. The relevant paragraphs 9 & 10 are extracted below: - "9. As is evident from the record, the assessee has included the sale consideration of Rs. 29,61,653 from the sale of shares of M/s ACI Infocom Ltd and sale consideration of Rs. 1,03,03,918 from the sale of shares ofNYSSA Corporation Ltd in its profit and loss account for the year under considerat....

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....read with section 115BBE of the Act. Accordingly, we are of the considered view that the learned CIT(A) has erred in confirming the same, and therefore, the impugned order is set aside. The AO is directed to delete the impugned addition." 6. We have heard the rival submissions and perused the documents available on record. The assessee has engaged in substantial share trading amounting to Rs. 22 crores, out of which only Rs. 27,19,277/- pertains to transactions involving JRIIIL. The assessee has submitted that no benefit of long-term capital gains exemption under section 10(38) of the Act, has been claimed in respect of the profit derived from the alleged shares. Furthermore, there is no evidence on record to establish that the assessee ....