TaxTMI 
TaxTMI 
2025 (6) TMI 1992
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....rred in confirming the action of the Ld AO in reopening the proceedings u/s 147 of the Income Tax Act, 1961 2. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in confirming addition of Rs. 38,42,236 being the sale proceed of sale of shares of M/s Diamant Infrastructure Ltd under section 68 of the Income Tax Act, 1961 as unexplained cash credits by alleging that transaction incurred by the appellant are non-genuine. 3. On the facts and circumstances of the case and law, the Ld. CIT(A) erred in not deleting the estimated income of Rs. 5,63,785/- (being 5% of Rs. 1,12,75,697/-) transaction in shares other than Shares of Diamant Infrastructure Ltd) and erred in remitting the issue to the file of Ld AO ....
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....khs as unexplained cash credit. 2.2 The AO further added Rs. 1,15,267/-, which represented 3% of total sale proceeds, as commission paid by the assessee to various brokers/exit providers. 2.3 The Ld.AO observed that the assessee indulged in share trading through NSE and BSE for a total amount of Rs. 1.51 crores. After reducing Rs. 38.42 lakhs, which was separately brought to tax, the AO was left with the balance amount of Rs. 1.12 crores. 2.4 The Ld.AO also observed that the assessee had purchased and sold many scrips during the year but the quantitative details like the period of holding and the quantum of shares etc. were not furnished in the absence of such details, the AO added an amount of Rs. 563785/-,....
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....ed. Ground no. 3 is allowed. Ground no. 4 & 6 are against the addition made of Rs. 563785/-. The AO observed that the appellant had undertaken transaction of Rs 15117933/- comprising of purchase and sale of shares. After reducing the amount of Rs. 38.42 lakhs, which was separately added, the balance amount of transactions is of Rs. 11275697/-. On the grounds that the quantitative details and the period of holding differed for each of the scrips, the AO estimated the income @5% on this balance amount. The appellant pleaded that the AO erred in adding the impugned amount as STCG. After perusal of the assessment order and the submission of the assessee, it is felt that the issue should be set aside to the file of the AO for prop....
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....made ad hoc disallowance 3% towards commission u/s.69C in respect of the sale proceeds received from sale of Diamant Infrastructure Ltd. 4.2.1 And 5% of the total sale purchase transaction under taken by the assessee was disallowed due to non filling of the quantitative details and the period of holding of the other scripts. 5. In the interest of the justice we deem it appropriate to remit this issue back to the Ld.AO for denovo consideration to verify the transaction of sale and purchase undertaken by the assessee in various scripts at BSE-NSE floors. 5.1 Needless to say that, merely because Diamant Infrastructure Ltd. is alleged to be a penny stock, unless correlation is made in respect of the phenomenal price rise with a transac....