2025 (3) TMI 1561

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....sed by the Income Tax Appellate Tribunal, Surat (for short 'the Tribunal') in ITA No.893/SRT/2023 for the Assessment Year 2015- 2016:- "A. Whether on the facts and in the circumstance of the case and in law, the Hon'ble ITAT was justified in deleting the addition of sale proceeds of the share of Rs.25,26,325/- on account of undisclosed income u/s 68 of the Act made by the Assessing Officer arising out of sale of shares of M/s Mishka Finance & Trading Ltd., a penny stock and without appreciating the findings of the Assessing Officer that the price movement of the company were not supported by financial fundamentals of the company? B. Whether on the facts and in the circumstances of the case and in law, the Hon'ble I....

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....s selected for scrutiny assessment and statutory notices under section 143(2) and section 142(1) of the Act along with questionnaire were issued on 20.09.2016 and 31.05.2017 respectively. 5. The assessment under section 143(3) of the Act was completed on 21.11.2017 determining total income at Rs.31,88,080/- by making addition of Rs.25,26,325/- on account of undisclosed income under section 68 of the Act and Rs.1,26,316/- on account of unexplained expenditure under section 69C of the Act. 6. Being aggrieved, the assessee preferred an appeal before the Tribunal who vide order dated 18.01.2024 allowed the appeal of the assessee following its order dated 17.08.2023 in ITA No.197/SRT/2023 for Assessment Year 2014-2015 since both had the sa....

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....omplete evidence including contract note of shares, demat details, detail of bonus shares. However, no adverse evidence was brought against such evidence. Nor the assessing officer made adverse comment on such evidences. I further find that SEBI made a through inquiry against Mishka Finance & Trading Ltd. and vide order dated 05.10.2017 that no adverse materials were found in the investigation report with respect to prima facie violation. 10. I find that Hon'ble jurisdictional High Court in the case of Himani M. Vakil (supra) held that where assessee duly proved genuineness of sale transaction by bringing on record contract notes of sale and purchase, bank statement of broker and demat account showing transfer in and out of sha....

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....y on the basis of the report of the Investigating Wing, Kolkata. It is pertinent to note at this stage that in furtherance to the aforesaid report, SEBI has undertaken a detailed inquiry against M/s.Mishka Finance & Trading Ltd. and in the said inquiry, vide order dated 5.10.2017, the SEBI has not found any adversarial material of any violation of statute. Over and above, admittedly, the assessee has also furnished complete evidence including contract note of shares, demat details, details of bonus shares and those evidences have not been doubted by the authorities. 8. At this stage also, it is required to be noted that the entire transaction was done by the assessee through the platform of BSE by paying necessary security transact....