TaxTMI 
TaxTMI 
2025 (12) TMI 60
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....ction 147 r.w.s. 144 of the Act despite the fact that the assumption of jurisdiction under Section 147 of the Act was based on incorrect and erroneous information. * The Hon'ble CIT(A) failed to appreciate that the information received from the Investigation Wing regarding the alleged bogus Long Term Capital Gains (LTCG) was factually incorrect as the Appellant had never reported any Long-Term Capital Gains in his return of income, thereby rendering the entire reassessment proceedings void-ab-initio. * The Hon'ble CIT(A) failed to appreciate that in the absence of any Long- Term Capital Gains in the Appellant's Return of Income, the allegation of bogus Long-Term Capital Gains is baseless, and the reassessment p....
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....unds of appeal." Brief facts of the case are as under:- 2. The assessee filed his return of income on 31/03/2017 declaring total income at Rs. 4,90,760/-. The case was selected for scrutiny u/s 147 of the Act by issuing notice u/s 148 of the Act for following reason:- * Assessee has sold 5000 equity shares of Safal Securities Ltd. whose equity shares have been used for generating bogus LTCG and contrived losses. 2.1. In response to the notice issued, the assessee filed its return of income on 26/10/2021 as originally filed. Subsequently, statutory notices were issued to the assessee. In response, the assessee filed the details of share brokers along with copy of profit and loss account of the shares. The assessee filed the....
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....urnished by the assessee upheld the observations of the Ld. AO and confirmed the additions so made. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before this Tribunal. 4. The Ld. AR submitted that the assessee had not earned any long term capital gain during the year under consideration. He submitted that the assessee in fact declared all the income from trading of securities under the head 'income from business and professions' and offered the same to tax. The Ld. AR submitted that provisions of Section 68 of the Act requires that assessee has to provide an explanation of any sum credited in its books of accounts and that the said explanation should satisfy the Ld. AO. He submitted that in the present facts of t....
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....submitted that at page 99, the summary of the shares held and sold during the year is placed which clearly indicates the sale of 5000 shares of SSL was through banking channel. 4.2. The Ld. AR submitted that, at the time of purchase, the assessee made payments through banking channels which is also evident from the bank statement furnished during the assessment proceedings. He submitted that demat account was not available during the relevant year of purchase as the same was made mandatory by the SEBI from 2009 onwards. He submitted that, merely because assessee could not furnish the demat statement of the shares at the time of purchase, the transactions of the assessee cannot be treated to be not genuine. 4.3. The Ld. AR also raised ....
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.... SSL is placed on record showing the sale of 5000 shares on 18/11/2015 for a price of Rs. 32,887.31/-. 5.1. It is an admitted fact that, during the years when the shares were purchased by the assessee there was no requirement for dematting the same. Under such circumstances, letter showing transfer of shares, serves as an initial proof of the entitlement of shares and has to be treated as a valid document in the hands of the assessee. The letter of transfer of shares records the intent of the company to transfer the ownership of the said quantity of shares purchased by the assessee. Unless this document is considered or proved to be fabricated by the revenue, the same cannot be rejected at the threshold. In the present facts of the case,....