2025 (2) TMI 1521

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....unds of appeal:- "[1] The Ld. ADDL/JCIT (A)-7, Kolkata has grievously erred in confirming the addition made by the Ld. A.O of Rs. 6,24,490/- by dismissing the appeal for the gain of the Hemo Organics Limited which is illegal and unjustifiable. [i] The appellant submits that the Ld. A.O. has considered the income of the return filed u/s. 139(1) and not the return of income filed u/s. 148 is illogical and illegal. [ii] The appellant further submits that the gain of the stock was already added to the income as per the return filed u/s. 148 of the Act, the Ld. A.O. has made the addition of the same income amounts to double taxation. [iii] Also the appellant submits that the profit of the Hemo Organics Ltd. pe....

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.... Hemo Organics Ltd. The Assessing Officer held that since the assessee had not declared income from sale of shares of penny scrip Hemo Organics Ltd., the entire profit of Rs. 6,24,490/- on sale of shares of Hemo Organics Ltd. was liable to be treated as income of the assessee under Section 68 of the Act. 4. In appeal, Ld. CIT(A) dismissed the appeal of the assessee with the following observations: "As per AO, the appellant has traded in a penny stock, that is the script of Hemo Organics Ltd. The penny stock scripts, like Hemo Organics ltd are identified by department after thorough investigation and information was passed to assessing officers of beneficiaries. The appellant had made profit out of share transactions made in Hemo....

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.... Counsel for the assessee submitted that in case of sale of shares through a broker M/s. Prudent Broking Services Pvt. Ltd., the assessee incurred net profit of Rs. 2,49,327/- (in which profit on sale of shares of Hemo Organics Ltd. of Rs. 4,55,504/- had already been considered). Further, in the said return of income, the assessee had also declared net profit on sale of shares from another broker M/s. Prabhudas Liladher Pvt. Ltd. amounting to Rs. 1,71,833/- and such net profits also included profit on sale of shares of Hemo Organics Ltd. amounting to Rs. 1,68,986/-. Accordingly, the Counsel for the assessee submitted that the case of the assessee is that while filing return of income in response to notice under Section 148 of the Act, the a....