TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 347
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....50 of the Income Tax Act, 1961 [hereinafter referred to as 'the Act'] whereby the Ld. CIT(A) had allowed the appeal against the Assessment Order, dated 24/05/2022, passed under Section 147 read with Section 144C(3) of the Act for the Assessment Year 2017-18. 2. The Revenue has raised following grounds of appeal : "1. Whether the Ld. CIT(A) erred in deleting the addition of Rs. 3,86,67,259/- u/s.68 of the Act and addition of Rs. 11,60,026/- u/s.69C of the Act made on account of sale consideration received from sale of shares of Kushal Limited of Kushal Group, which was found to be a penny stock based on the investigation carried out by the DGIT (inv.) Ahmedabad. 2. Whether the Ld. CIT(A) erred in holding that Assessing O....
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....exit providers for introducing unaccounted cash in the books of accounts of the beneficiaries entering into bogus purchase/sale transactions resulting in pre-determined capital gain/loss. The Assessing Officer noted that the Assessee had sold shares of Kushal Limited for an aggregate consideration of INR. 3,12,42,755/- which has resulted in capital gains of INR. 74,24,567/- which were not offered to tax. Therefore, the Assessing Officer made an addition of INR. 3,86,67,529/- under Section 68 of the Act. Further, the Assessing Officer also made addition of deemed commission expenses of INR. 11,60,026/- (3% of INR. 3,86,67,529/-) holding the same to be as unexplained expenditure in terms of Section 69C of the Act incurred by the Assessee for ....
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....diture. 6.1. On perusal of the assessment order, it is seen that the assessing officer has relied upon the statement of one Shri Ashish Pannalal Shah recorded under section 131 of the Act by the Investigation Wing of the Department during the course of action under section 132 of the Act in the case of Kushal Group. As per the assessing officer, Shri Ashish Pannalal Shah had accepted that he was providing market manipulation services to companies and thereby rigging the share price to a certain level as desired by companies and for that he had received commission from these companies. As per the assessing officer, Shri Ashish Pannalal Shah had also accepted that he had used accounts of others for his market manipulation work. The a....
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.... Court in the case of Pr. CIT Vs. Indravadan Jain, HUF (ITXA No. 454 of 2018) dated 12/07/2023 as relied upon by the appellant is found to be applicable to the present appellant's case. 6.4 In view of the above, it cannot be said that the purchase and sale of the shares of Kushal Limited/Kushal Group was bogus in nature and the transactions of purchase and sale were sham transactions. 6.5 In addition to above, it may also be mentioned here that the amount of sale consideration on sale of shares of Kushal Limited/Kushal Group is not pointed out by the assessing officer that the same was found recorded in the books of account of the appellant. Hence, one of the conditions to invoke provisions of section 68 of the Act in ....
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....T(A). On perusal of paper-book filed by the Assessee we note that the findings returned by the CIT(A) are supported by the material on record which includes computation of capital gains and computation of income for the Assessment Year 2017-18, relevant extract of Demat Account of the Assessee, Bank Statement of the Assessee for the relevant period and the Bank Statement of NRI Account. The aforesaid material on record shows that both purchase and sale transactions were made through stock exchange during the relevant previous year and the Assessee had earned Short Term Capital Gain from the purchase/sale transactions under consideration. A perusal of the Assessment Order shows that the Assessing Officer has moved on the premise that the Ass....