TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 581
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....nted income in the form of exempt Long Term Capital Gain and also in the form of Short Term Capital Gain and it transpired that the assessee had claimed exempt LTCG of Rs. 16,35,050/- in his return of income. On the basis of this information, the case of the assessee was reopened u/s 147 of the Act after recording the reason. The assessee was completed u/s. 147 r.w.s. 144B of the Act on 25-03-2023 at total income of Rs. 25,79,820/- as per original return. Subsequently, the case record was called for examined by the Ld. PCIT who found that since no addition was made in respect of bogus accommodation entry of Rs. 12,18,543/- in the form of exempt LTCG, the order of the A.O. was erroneous and prejudicial to the interest of revenue. Therefore, the Ld. PCIT set-aside the assessment order passed by the A.O. with a direction to pass a fresh assessment order. 3. Aggrieved with the order of Ld. PCIT, the assessee is in appeal before us. The following grounds have been taken in this appeal: 1.1 The Order passed u/s. 263 on 06.03.2025 for AY 2018-19 by Pr.CIT Ahmedabad-1, A'bad (for short Pr.CIT) holding that the order of assessment u/s 147 r.w.s 144B passed on 25.03.2023 by AO accepti....
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....rrect in holding that the order of the A.O. was erroneous and prejudicial to the interest of revenue. He submitted that the assessee was a regular trader in shares and the transactions carried out by the assessee were through a registered broker and the purchase as well as sale transactions were duly reflected in the de-mat account of the assessee. Further, that there was no material available with the A.O. to treat the transaction of the assessee as accommodation entry and the A.O. had given a specific finding in this regard in the assessment order. Therefore, the Ld. PCIT was not correct in revising the order u/s 263 of the Act. 5. Per contra, Ld. CIT-DR Shri Sher Singh supported the order of the Ld. PCIT. 6. We have considered the rival submissions and carefully gone through the materials brought on record in the paper-book filed by the assessee. It is found that the only issue for which the case was reopened was to examine the share transactions in M/s. Kushal Tradelink Ltd. In the course of assessment, the A.O. had made detailed enquiry in respect of LTCG claimed as an exempt u/s 10(38) of the Act by the assessee. The A.O. vide show cause notice dated 11-03-2023 had also req....
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....s duly reflected in my Return of Income. I am enclosing herewith details of total long term capital and short term capital scripwise earned lost during the F.Y. for your ready reference (Annexure-B) The said information is also reflected in the Return of Income filed by me. I am enclosing herewith statement of Income and Income Tax Return Acknowledgement for your ready reference. (Annexure-C). iv) Please, kindly note that I have purchased shares through my share broker Innovate Securities Pvt Ltd, who is duly registered with SEBI registration No. INB/INF 010700236. I am enclosing herewith copy of Contract note cum bill issued by my broker for your ready reference. (Annexure-D) have purchased shares through above Contract Nos. 6728, settlement No. on the date mentioned on contract note and order No. Ordered time, trade No. trade dale are clearly given in the contract Note which proves that I have genuinely purchased shares through recognised stock exchange. Total value of the purchase of shares of Kushal Ltd for which payment was made through A/c, payee cheque from my account No. 08120010010290 with Kotak Mahindra Bank Ltd. Navrangpura branch. Copy of the bank statement is enclose....
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....to earn profit out of that and I have no connection with any operator and I am not party to alleged price rigging. I have no nexus with the company, its directors or operators and I am not connected with the activity of the price rigging and have no control over the same. I may have got only incidental benefit of the price rise or fall. All the evidence of the sales and purchase of shares including contract cum bill are submitted above and no fault with these documents can be found. Payments are also made /received through the A/c. payee cheque, transactions of sale is done through the recognised stock exchange and STT is duly paid and there are no evidence that I have paid any cash for the purchase of bogus long term capital gain, it is not clear that based on what information your goodself have considered my transactions as bogus. If you have any that I can counter information. please let me know those information. viii) No evidence has been collected with the fact that any cash has been deposited in the account before issue of cheque to me / by The truthfulness of the documents submitted by me are If as per genuine and I request you to examine the same. Information available w....