2025 (12) TMI 1505

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.... there are price manipulations of the stock, relied on the Investigation Wing report of Kolkata Investigation Wing and a graphic representation of price moments of stock. The price of the stock went as high as Rs. 360/- and fell down to very negligible levels. The Ld. AO has also contended that the financials of company are very weak and cannot support the huge price rise as it went up in stock market. In view of all these cumulative facts, the Ld. AO concluded that the appellant is a beneficiary of price manipulations and finally disallowed the claim of LTCG. 2. Aggrieved by the order of Ld. AO, the appellant filed an appeal before Ld. CIT(A) and this First Appellate Authority has also confirmed the addition after analyzing all the case....

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....the transactions were sham. 8. That the learned AO erroneously relied on unverified investigation reports, assuming the transactions were part of a pre-arranged scheme without independent verification. The AO failed to appreciate that mere allegations by the Investigation Wing cannot be the sole basis for concluding that the LTCG is bogus. 9. That the learned AO wrongly invoked the principle of 'human probabilities' to question the genuineness of the transactions, despite them being conducted in the ordinary course of business. 10. That the learned AO's reliance on case laws that are not factually applicable to the appellant's case led to the unjust treatment of genuine transactions as unexplained ....

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.... broker where "contract notes" were issued and money was paid/received through banking channels, then the transactions should be accepted as genuine and LTCG was being allowed. The Ld. AR of the appellant has also distinguished all the cases relied on by Ld. AO and Ld. CIT(A) where the Revenue won the appeals in the cases where appellant's exemption under section 10(38)of the Act was denied. 5. Per contra, Ld. DR has relied on all the decisions in favour of the Revenue and orders of Ld. AO and Ld. CIT(A). The Ld.DR filed written submission in which it was stated that in all manipulated scrips, the shares were split into 1:10 or so, consequently assessee get huge number of shares which can be sold and show that the appellant gets good amo....

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.... and the Coordinate Bench passed the decision in favour of the Revenue. The Ld. DR submitted that the appellant filed VSV Scheme after ITAT decision and paid taxes. Copies of these two decisions were also enclosed by Ld. DR before the Bench. 6. The Ld. AR again filed written submission as rebuttal to the arguments of Ld. DR and concluded that all cases relied on by Revenue are not applicable to the facts of his case. Finally, the Ld. AR placed fresh evidence before ITAT stating that he filed an RTI petition before SEBI asking them about SEBI's investigation report/final order relating to price manipulations of scrip "Tilak Ventures Ltd., formerly Tilak Finance Ltd." which again changed its name to "Out of City Travel Solutions Ltd.". The....