2024 (8) TMI 1643

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....sing Officer ('A.O.' for short) and upheld by the ld. CIT(A) on account of Long Term Capital Gain ('LTCG' for short) arising from sale of shares alleged to be a penny stock as unexplained cash credit u/s. 68 of the Act. The assessee has also challenged the grounds of violation of principles of natural justice and the reopening of the assessment along with the other consequential ground. 3. The brief facts are that the assessee is an individual and had filed his return of income dated 31.07.2012, declaring total income at Rs.6,38,636/- out of the income from other sources and loss from business. The assessee's case was reopened u/s. 147 of the Act vide notice u/s. 148 of the Act dated 23.09.2016 as per the information received....

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....cording to the ld. AR was not alleged by the department to have engaged in providing accommodation entries. The ld. AR also contended that the ld. A.O. has specified about Shri Manish Waghela and Shri Sachin Kadam who is said to have purchased the shares of M/s. Karma Industries along with the director of M/s. Fiber Texfab through the demat account with Kunvarji Finstock Private Limited (Stock Broker) for the purchase of shares of M/s. Karma Industries which the ld. AR states that the assessee is noway related to the said transaction. The ld. AR submitted that the ld. A.O. had not given copies of the statements relied upon during the assessment proceeding to the assessee and had also pointed out that they were unsigned copy without date or ....

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.....05.2010 to 12.05.2011 @ Rs.275/- to Rs.271/- per share, aggregating to Rs.54,62,094/- with a gain of Rs.48,67,625/- and had claimed it as exempt u/s. 10(38) of the Act. The assessee's case was reopened based on the information from the Kolkata Investigation Directorate. The ld. A.O. had in her order detailed about the modus operandi of the said transaction and held the shares of M/s. Karma Industries to be apenny stock. It is observed that the assessee has bought the shares at a face value of Rs.29.54/- through stock brokers namely M/s. JHP Securities and had sold the same through BSE at an average rate of Rs.271/- to Rs.275/- to various entities. The ld. A.O. has discussed about the purchases of the said shares who are alleged to be the e....