2025 (9) TMI 1314

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....the Income-tax Act (hereinafter referred to as the "Act"). 2. The principal issue contested by the assessee through ground of appeal No.2 is against the action of the Ld.CIT(A) confirming the action of the Ld. AO by disallowing the claim of 'Long Term Capital Gains' (hereinafter in short "LTCG") u/s. 10(38) of the Income Tax Act, 1961 (hereinafter in short "the Act") amounting to Rs. 1,58,43,122/- and the amount of Rs. 4,75,293/- on account of deemed unaccounted commission charges aggregating to Rs. 1,63,18,416/-. The assessee has through ground of appeal No.1 contested the order of the Ld.AO dated 30.12.2017 on jurisdictional ground. 3. The jurisdictional contest made by the assessee through ground of appeal no.1 rests on the premise....

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....y stock company, and hence he proceeded to hold that the LTCG was nothing but bogus gain, and chose to add the entire sale value of Rs. 1,58,43,122/- as income of the assessee under the head 'income from other sources' and added the same to the total income of the assessee. The Ld.AO also made a presumption that typically such transactions are carried through commission agents and brokers. Consequently, relying upon the report of Investigating Wing of Kolkata, it calculated a undisclosed commission payment of Rs. 4,75,293/- being 3 % of Rs. 1,58,43,122/- as unexplained expenditure incurred by the assessee. Thus, total addition of Rs. 1,63,18,416/- was made. The impugned addition was confirmed by the Ld.CIT(A) by concurring with the findings....

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....his crucial fact shows that assessee has purchased the shares of GTAL in regular course, and has sold the shares when the price was high; and in that process, has made LTCG of Rs. 1,52,39,899/- which was claimed as exempt income.The impugned transaction can't be disallowed merely on the basis of report of investigation report, which is a general report. From the assessment order we have noted that the Ld.AO has merely narrated and relied upon the modus operandi indicated in the report of the Investigation Directorate of Kolkata in the affairs of Penny Stock Companies. There is nothing on record to suggest that the Ld.AO conducted any independent enquiries of his own before drawing adverse conclusions qua the income of the assessee. We have ....