TaxTMI 
TaxTMI 
2025 (7) TMI 102
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....nces of the case. 3. Heard the rival submissions. The return of income for the assessment year 2013-14 was filed by the assessee on 30-9-2013 under section 139(1) of the Act. The assessee had transacted in the shares of M/s CCL International Limited during the year under consideration, which was considered to be a penny stock by the Income Tax Department. Based on the Investigation Wing report, the Learned AO proceeded to issue notice under section 148 of the Act on 31-03-2021. In response to the notice under section 148 of the Act, the assessee filed her return of income on 30-04-2021. The assessment was completed under section 144B read with section 147 of the Act by making addition of Rs. 81,03,345/- treating as unexplained money under section 69A of the Act, stating that the assessee had indulged in dubious and unconventional nature of transaction in purchase and sale of shares of CCL International Limited for the purpose of purchasing the exempt long-term capital gains under section 10(38) of the Act. 4. The Learned NFAC observed that assessee is a qualified Chartered Accountant and regularly doing investments in share transactions and had been filing her income tax retu....
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....he same scrip from which the assessee had obtained long-term capital gain has been held to be genuine and held not to be a penny stock. Accordingly, the addition made under Section 69A of the Act in the sum of Rs 81,03,345/- as unexplained money stood deleted by the Learned NFAC. 5. None of the factual observations and findings made by the learned NFAC could be controverted by the revenue before us. Since the addition has been deleted by the learned NFAC by following the co-ordinate bench decision of this tribunal in the case of Reeshu Goel referred supra, it would be relevant to reproduce the operative portion of the said decision as under:- "8. On merits of the addition, we find that Ld. Assessing Officer, first of all noted that M/s. CCL International Ltd. is traded in Bombay Stock Exchange under the security ID M/s. CCL International with the security code no. 531900. He has incorporated the financials of the company as per the balance sheet available in the public domain which has been incorporated in paragraph 2 of the order from pages 2 to 5 of the assessment order. Assessing Officer observed that shares of M/s. AAR Infrastructure Ltd. were later on merged in M/s....
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....e of Rs.10 per share. The shares which were allotted on 17.02.2011 have been sold after period of more than 18 to 20 months, i.e., on 29.08.2012 to 10.10.2012. The said shares have been sold through stock broker M/s. Indianivesh Securities Pvt. Ltd. 17. Before us the ld. counsel has in his brief note has stated that following documents and statements were filed before the authorities below: (a) All the transactions were supported by proper Contracts Notes and delivery of shares was made through De-mat Account with stock broker, M/s Indianivesh Securities Pvt. Ltd. (who is the member of BSE and registered with SEBI). The shares were sold in the open market. The appellant has fulfilled all the condition u/s 10(38) of the Income Tax Act, 1961. The appellant has already filed National Security Depository Limited generated Demat Account and the broker statement relating to the sale of share in our paper book, also relevant demat statement highlighting the shares purchased has already been submitted before the Ld. AO. b) The appellant has earned long term capital gain through genuine purchase and sale of shares of the listed companies in normal course. There wa....
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.... material or evidence that assessee or assessee's broker have been found to be indulged in any kind of accommodation entry in this scrip. No inquiry whatsoever has been made from the broker of the assessee. Further, during the period in which assessee had purchased the shares and had sold them whether the SEBI had suspended the trading has not been mentioned, in fact, Assessing Officer himself mentions that there was brief suspension in the year 2010, whereas the assessee has purchased shares in the year 2011 and sold them in the year 2012. Coming to the financials, as culled out from the records, the revenue from the operation of M/s. CCL International Ltd. from March, 2010 to March, 2012 was between Rs. 55.25 crore to Rs. 79 crore. Thus, it cannot be held that it was mere a paper entity. From a bare perusal of the history of listing and trading of shares and the quote of Bombay Stock Exchange as quoted in the assessment order, it clearly reflects that as on 06.02.2010, the closing price was Rs. 50 and there was a steady increase and within the period of 4 years the price had reached up to Rs.609 on 25.11.2014. Nowhere, it has been pointed out that the rise was beyond the cap laid....