TaxTMI 
TaxTMI 
2025 (8) TMI 1687
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....by the Investigation wing of the department clearly depicting the fact that M/s Kailash Auto Finance Limited is BSE listed Penny Stock Company. 2. The Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 2,47,666/-u/s 69C of IT Act 1961 on account of unexplained expenditure for sale/purchase of penny stock shares amounting to Rs. 2,47,666/- during the FY 2013-14 by ignoring the fact that the information, enquiries, studies and analysis done by the Investigation wing of the department clearly depicting the fact that M/s Kailash Auto Finance Limited is BSE listed Penny Stock Company. 3 3. The Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 49,45,330/- on account of unexplained cash credit in form of bogus LTCG through penny stock shares of M/s Kailash Auto Finance Ltd amounting to Rs. 49,45,330/- during the FY 2013-14 by ignoring the fact that assessee has not provided details of any intermediary through whom the assessee came in contact with Brijdhara Mercantile Private Limited for buying the shares of Panchshul Marketing Limited. 4.The Ld. CIT(A) erred in law and on facts of the case in deleting....
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....on the price of the share with short spam of time. The AO further mentioned that the SEBI has temporarily suspended the trading activity of the shares of the said company. The assessee also purchased the shares of M/s. Panchshul Marketing Ltd. through M/s. Brij Dhara Mercantile Pvt. Ltd. situated at Kolkata on 27.11.2012. The Panchshul Marketing Ltd. has been merged with Class Auto Finance Ltd. Company vide amalgamation agreement dated 22.07.2013. The assessee has received 3,00,000 shares of M/s. Kailash Auto Finance Ltd. out of the above shares 1,30,000/- were sold during the year and made a capital gain of Rs. 49,45,329/-. The AO completed the assessment after making the addition of the addition u/s. 68 of the Act of Rs. 49,45,329/- as unexplained cash credit and 5% of the sale value of Rs. 2,47,666/- under section 69C of the Act. 4. Aggrieved by the order of the AO, the assessee filed the appeal before Ld. CIT A) who vide order dated 25.05.2024 allowed the appeal of the assessee against which the revenue filed the appeal before the Tribunal. The assessee also filed the cross objection before us. 5. The Ld. DR has submitted that M/s. Kailash Auto Finance Ltd. is a penny sto....
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.... and buying, selling or dealing in securities, either directly or indirectly in any manner, till the further directions, pending investigation in the script of in the case of Kailash Auto Finance Limited. Subsequent to the interim orders. SEBI carried out an investigation to look into the role of debar entities in price manipulation in script of Kailash Auto Finance Limited., vide order dated 21-09-2017 the earlier interim orders were modified and 244 entities including the Kailash Auto Finance Limited, Panshshul Marketing Pvt. Ltd. & Brijdhara Merchantile Pvt. Ltd. against whom directions were issued vide aforesaid interim orders were found to be not in violation of provision of SEBI Act, 1992. Accordingly SEBI vide order dated 21-09-2017, revoked the interim orders issued earlier in exercise of powers conferred under section 19 of SEBI Act, 1992 read with section 11,11(4) and 11B thereof, with immediate effect. Ld. CIT(A) has observed in his order as under : 5(c). Despite filing of the above supportings, the AO simply proceeded to deny the assessee's claim of exemption of long term capital gains on sale of above shares. The AO did not make any efforts to establish th....
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.... grounds are hereby allowed. 10. We find that the transaction of the assessee in the script of Kailash Auto Finance Limited., which resulted in long term capital gain to the assessee, has been found to be not violative of the provisions of relevant Act and Rules by the SEBI upon necessary investigation and even the initial restraint order was revoked vide order dared 21-09-2017. Ld. CIT(A) has examined the issue in the correct prospective and rightly deleted the additions towards unexplained cash credit u/ 68 and unexplained expenditure u/s 69 of the Act. We do not find any reasons to interfere with the findings of the Ld. CIT (A). The appeal of the revenue is liable to be dismissed. C.O. No.411/D/2025 for A.Y. 2014-15 Mahavir Singhal Vs. ITO Grounds No 1& 2 : 11. Ld. AR submitted that the department has filed the appeal beyond time but no objection has raised by the office. So the appeal has filed within time. The ld. AR also submitted that the appeal is not maintainable due to the low tax effect. The Ld. DR submitted that this case falls out of the preview of the circular of the CBDT No. 09/2024 dated 17-09-2024 issue by the Department because this is a penny strok....