TaxTMI 
TaxTMI 
2024 (2) TMI 1628
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.....w.s. 147 merely on the basis of borrowed satisfaction, presumption and surmises 2. In the facts and circumstances of the case and in law, the learned A.O. erred adding LTCG on sale of shares M/s SVC Resources Ltd. worth Rs 4,08,473/- u/s 68 claimed as exempt by the Appellant. a. On the basis of suspicion and presumption b. Based on third party statements c. Without any proof of refund of cash d. By wrongly correlating general data of listed company with the Appellant e. by making only guesswork & overlooking documents and by relying upon cases not applicable in this case f. By not offering the opportunity to cross-examine the brokers and without furnishing copies of state....
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....the Investigation Wing such as the financials of the company concluded that the transaction entered into by the Assessee is not genuine stating that the inordinate increase in the share price of the is not properly supported by the financial statements. Accordingly the AO treated the entire sale consideration as addition u/s 68 of the Act. The AO also made addition u/s. 69C assuming 3% commission was paid to the accommodation entry providers amounting to Rs.12,254/-. Aggrieved, the Assessee filed appeal before the CIT(A). The CIT(A) confirmed the additions made by the AO stating that mere production of documents and contracts alone cannot prove the genuineness of the transaction and that no prudent investor would invest in a company which d....
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....that merely because the script is held to be of Penny stock, the addition cannot be made in the hands of the Assessee who is an innocent investor in the said script. The Ld. AR drew our attention to the various documentary evidences with regard to the purchase, sale of the sale of the script to submit that the entire transaction was done online through DEMAT account of the Assessee and the proceeds of the entire transaction is routed through banking channels. The Ld. AR also drew our attention to the fact that the Assessee is still holding the balance shares which would prove that the Assessee has entered into the transaction as a regular investor. Accordingly, the Ld. AR submitted that the transaction entered into by the Assessee is genuin....
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....ubmitted all the relevant documents in the form of broker bill, contract summary, bank statement, etc. (page 39 66,125,and 149 of paper book) It is also relevant to note that the lower authorities have not recorded any adverse finding with regard to the various documents submitted by the assessee. From the perusal of the broker statement with the list shares held by the assessee in various companies (page 53 of paper book) we noticed that the assessee is holding investments in various companies to the tune of Rs. 39,35,416/- which includes 9738/- shares of M/s. SVC Resources Ltd. Therefore, we see merit in the contention of the ld. AR that the assessee is a regular investor and that in his normal course of operation has sold a part of his i....
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....se was reopened under Section 148 of the Act. 4. The A.O. did not accept respondent's claim of long term capital gain and added the same in respondent's income under Section 68 of the Act. While allowing the appeal filed by respondent, the CIT[A] deleted the addition made under Section 68 of the Act. The CIT[A] has observed that the A.O. himself has stated that SEBI had conducted independent enquiry in the case of the said broker and in the scrip of RFL through whom respondent had made the said transaction and it was conclusively proved that it was the said broker who had inflated the price of the said scrip in RFL. The CIT[A] also did not find anything wrong in respondent doing only one transaction with the said broker in the scri....