TaxTMI 
TaxTMI 
2025 (3) TMI 1492
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....d order was emanated from the order of the Assessment Unit, Income-tax Department (in short, 'the A.O.') passed under section 147 read with section 144B of the Act, date of order 30/05/2023. 2. The assessee has taken the following grounds of appeal:- "1. On the facts and circumstances of the case in law, Ld. CIT (A) erred in confirming in reopening the case under section 148 of the Act which is bad in law. 2. On the facts and circumstances of the case in law, Ld. CIT (A) erred in confirming stand of A.O. for not providing opportunity to cross examination of the person whose statements are used against me. 3. On the facts and circumstances of the case in law, Ld. CIT (A) erred in confirming stand of A.O. for not....
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....Sections 147/143(3) of the Act, treating the aforesaid transaction as a sham. Consequently, the Ld. AO added the entire amount of Rs. 2,04,42,976/- to the assessee's total income. Additionally, the Ld. AO computed a commission of 2% on the purported LTCG, amounting to Rs. 4,08,860/-, and made an addition under Section 69C of the Act, attributing it to unexplained expenditure. In reliance on the report of the Investigation Wing, the Ld. AO found that Mr. Prakash Jajodia was the controller and operator of AMML and several other penny stock companies listed on the stock exchange. The modus operandi of these transactions was extensively detailed in the Investigation Wing's report, which indicated that Mr. Jajodia was engaged in provid....
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....as received through banking channel. 5. During the assessment proceedings and in appeal, the assessee submitted all the relevant documents as evidence supporting the genuineness of the impugned transaction, which are as follows:- Sr.No. Particulars APB page No. a. Copy of sale of shares through Allwyn Securities Ltd 47-66 b. Copy of demat account for the period FY 2013-14 & 2014-15 67-69 c. Ledger copy of Allwyn Securities Ltd &Global report 70-71 d. Copy of bank statement for payment of Purchase of shares and payment received for sale of shares. 72-78 6. The Ld.AR stated that all the documents were submitted by the assessee by a letter dated 13/06/2022 in relation to show cause notic....
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....argued vehemently and relied on the order of the revenue authorities. The Ld.DR stated that the entire transaction is a sham transaction and Mr. Prakash Jajodia, who is the operator of the said transactions, is usually providing the accommodation entry. So accordingly, the assessee is also taken this accommodation entry from the person related to this scrip. He invited our attention in appeal order page 15, paragraph 5.3.3 to 5.3.5, which are extracted below: "5.3.3 The Assessing Officer found that as per BSE data, the share price of the script registered a massive growth of about 155% during F.Y. 2014-15 within 5 months. Further it was found that the SEBY found M/s Appu Marketing and manufacturing Ltd. (Ejecta Marketing) to be vio....
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....ties like bill, contract note, bank statement, ledger copy of the broker, which are also annexed in the paper book filed before the Bench. The assessee during the assessment proceeding filed the letter dated 13/05/2023, annexed in APB pages 44 to 46 where the assessee asked for the relied upon documents and the statement of Mr. Jajodia. But by passing the alleged letter of the assessee the impugned assessment order was passed by the Ld. AO. The sale transactions of these shares were also conducted through a banking channel, and the LTCG amounting to Rs. 2,04,42,976/- earned and claimed as exempt income under Section 10(38) of the Act. This exemption applies as the sales were conducted on the Bombay Stock Exchange (BSE) and the requi....
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....h documents. In the case of Archit Gupta (supra) the coordinate bench of ITAT-Delhi held that where all characteristics of penny stock existed in present case, however, revenue had not brought on record any materials linking assessee in any of dubious transactions relating to entry, price rigging or exit providers and even in SEBI report, there was no mention or reference to involvement of assessee, impugned reopening of assessment on ground that assessee had earned LTCG on sale of shares through accommodation entries was unjustified. Conversely, the Ld. DR relied on the judgment in Pr. CIT-V, Kolkata vs. Swati Bajaj, 139 taxmann.com 352 (Cal). While we have respectfully considered this case, we note that the Tribunal disposed of 89 appe....