TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1687
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....e has raised the following grounds in appeal: "1. 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 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. 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 amounti....
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.... ignoring the fact that assessee failed to produce the evidence and supporting documents to substantiate its claim in reply dated 26.12.2016 that investment was made on the basis of some expert reports, studies and news on the internet. 6. The Ld. CIT(A) erred in law and on facts of the case in deleting the addition of Rs. 2,47,666/-/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 assessee failed to produce the evidence and supporting documents to substantiate its claim in reply dated 26.12.2016 that investment was made on the basis of some expert reports, studies and news on the internet. 3. The brief facts of t....
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....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 stock company and this fact was ignored by the Ld. CIT(A) by allowing the appeal of the assessee....
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....sued from the directorate of investigation that the assessee is one of the beneficiary, of bogus penny stock transaction, reassessment proceedings were initiated and notice u/s. 148 was issued. According to AO the price of share of M/s Kailash Auto Finance Ltd. has sky rocketed without having any corresponding financial results. The parameters which are essential for increase of price of share are not present. The AO also observed that in this matter, SEBI had directed BSE to suspend trading in several trading in several Penny Stocks which includes the shares you have traded in i.e. of M/s Kailash Auto Finance Ltd. 9. We find that SEBI vide interim order dated29-03-2016 and 15-06 -2016 restrained the 246 entities, including the assessee, f....
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....order of the SEBI dated 29.03.2016 which temporarily suspended trading activities of the above shares. ON the basis of the above order of SEBI the AO came to a conclusion that this is a fictitious transaction. This shows that the AO did not carry any independent enquiry whether with brokers or intermediaries and not brought any relevant material to establish the non-genuineness of the above transaction. However, the SEBI subsequently investigated the matter under provisions of (Prohibition of fraudulent and unfair trade practices relating to securities market) PFUTP regulations, 2003 Act and given following findings which are clearly mention at para 5 of the SEBI's order dated 21.09.2017. As per the above order the SEBI has given clean ....
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....ulted 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 o....