TaxTMI 
TaxTMI 
2026 (1) TMI 1572
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.... impugned order emanated from the order of the Ld. Assistant Commissioner of Income-tax, Circle-32(2), Mumbai (hereinafter, 'Ld.AO') passed under section 143(3) read with section 147 of the Act, date of order 12/12/2017. 2. The brief facts of the case are that the assessee is regularly filed his return and during the impugned assessment year the assessee filed his ROI. He had declared the income under the head capital gain and income from other sources. He acted as an investor and declared Long Term Capital Gain (LTCG) of Rs. 74,34,044/- U/s 10(38) of the Act as exempted income. The Ld. AO rejected the assessee's calim U/s 10(38) of the Act & treated the LTCG as bogus transcation. After claiming cost of purchase of Rs 99,900/- actual cos....
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....18/- being the estimated commission @3% on the purchase of the shares. The aggrieved assessee carried the matter before the Ld.CIT(A). The Ld. CIT(A) upheld the order of the Ld.AO. Further aggrieved, the assessee filed appeal before us. 3. The Ld.AR argued and filed a paper book containing pages 1 to 197, which is kept on record. The Ld. AR further argued that the Ld. AO failed to consider various reply in its true sense and perspective in respect of statement recorded under section 131 of the Act. In the market, many times rise in price has no relation to fundamentals because of speculative buying. The learned AO in the order categorically observed that all these transactions are done on the stock exchange and as the sale of shares ared....
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....he party when the party is a corporate entity also registered with the regional ROC having DIN. There is no direct or specific evidence to show that unaccounted cash of assessee was moved or transferred to so called entry provider or operator. Assessee is a registered client of credential stock broker of Mumbai and his account is KYC complied he is dealing through the said account even in past. The assessee never approached to any such stockbroker or operator for LTCG and he never registered as a client to stock broker through such person trade pattern and various analysis mentioned in the order. It does not prove that the LTCG is arranged one. The sale and purchase of shares are on open platform of stock exchange and are always on commerci....
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....nder section 142(1) of the Act, and a copy of the reply dated 09/10/2017 was furnished before the Ld. AO. Subsequently, another reply dated 13/10/2017 was also filed before the Ld. AO, the copy of which is placed at APB pages 113 to 197. It was further submitted that the assessee had placed on record all relevant documentary evidence, including the share certificate, contract notes, demat account statements, and confirmations from the brokers, in support of the impugned transactions. The Ld. AR further contended that the very same issue stands adjudicated in favour of the assessee by the Coordinate Bench of the ITAT, Mumbai, E-Bench, in the case of Ketan Harilal Mehta (HUF) vs. ITO in ITA No. 770/Mum/2023, pronounced on 03/06/2024, which is....
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....ction Tax(STT) and the demat account statement reflectingdebits on the sale of shares and the sale proceeds are received through banking channel. The A.O has not established that the assessee was involved in the price rigging of the shares and also any enquiry was conducted by the SEBI and BSE. Further as discussed in the above paragraphs, the Honble Tribunal dealt on the same scrip of share and for the same assessment year and has allowed the appeal. Accordingly, considering facts, circumstances, ratio of judicial decisions, submissions, evidences and rely on the judicial precedents as discussed above and set aside the order of the CIT(A) and direct the assessing officer to delete the additions u/sec68 &69C of the Act and we allow the grou....