2025 (12) TMI 293

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.... "1) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition of Rs. 1,76,860/- u/s 69A of the Income Tax Act, 1961 without considering the fact that the assessee fail to furnish demat account and copy of bank statement. 2) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the assessee is one of the beneficiary of accommodation entry in the form of Short Term Capital Gain/Loss by way of trading in the Penny Scrip of M/s. Kyra Landscape Ltd without considering the facts and circumstances of the case. 3) "The appellant craves leave to add, amend, alter substitute or modify any of the a....

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....e AO in the assessment order that the Appellant did not furnish contract notes; on the other hand, the assessing officer himself records that a "contract note-cum-bill" was submitted and has been perused. Such contradictory findings undermine the reliability of the conclusion drawn. 4. Even assuming for a moment that Kyra Landscape Ltd., erstwhile Ancient Infra Ltd., could be categorised as a penny stock company and transactions therein invite closer scrutiny, the surrounding circumstances of this case do not justify the conclusion of bogus dealings. The Appellant is a professional engaged in human resources management and management consultancy, deriving a regular and decent salary income which has been consistently disclosed in t....

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....iven by the AO lacks due application of mind as no efforts have been made to establish that the company under reference is a penny stock company. Considering the circumstances and the inherent infirmities in the assessment order, I am inclined to hold that the addition made under Section 69A is unsustainable in law. Accordingly, the addition of Rs. 1,76,860/- is directed to be deleted. The ground of appeal and in result, the appeal is allowed." 5. Heard the parties and perused the material available on record. We find that the Ld.CIT(A) has duly take into consideration the factual matrix of the case and evidences so produced by the assessee in the form of contract notes, the statement of capital gains, the fact that the transaction has b....