TaxTMI 
TaxTMI 
2025 (10) TMI 1398
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....blish that the price rise was genuine AMD consequently she was entitled to claim LTCG on the transaction. As regards quoting section 68/69A of the Act, the AO implied that the addition was made us 68 of the Act. So far as holding of penny stock till the end of financial year is concerned, the AO for abundant precaution mentioned section 69A. 2. On the facts AMD circumstances of the case, the Ld. CIT(A) has erred in law AMD facts by not considering the fact that assessee has failed to furnish confirmation from M/s Economy Supplier Pvt. Ltd for purchase of shares of M/s PMC Fincorp Pvt. Ltd (Earlier known as Priti Marcantile co. Ltd), as the purchases of share was made through off market AMD contract note/ bill furnished by the assessee was fabricated. 3. On the facts AMD circumstances of the case, the Ld. CIT(A) has erred in law AMD facts by not considering the fact that the assessee has not reported the transactions of sale of shares in her return of income which also establishes that assessee has deliberately not disclosed the transactions in view of tax evasion. 3. At the outset, the ld. Counsel for the assessee submitted that the appeal of the Department is ....
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....ch the impugned addition is to be made. It was argued that addition u/s 68 was in any case impermissible as the assessee is an individual having no other business income and consequently not maintaining any books of accounts. Reliance in this regard was placed upon the decision of Hon'ble Delhi High Court in the case of Ms. Mayawati 338 ITR 563 and of Hon'ble Apex Court in the case of Baladin Ram 71 ITR 427 (SC). The ld. Counsel submitted that it had acquired 8000 shares on 30.08.2011 from M/s Economy Suppliers Private Limited and payment of Rs. 2,40,000/- was made utilizing banking channel. A copy of Axis Bank, account statement evidencing the transactions has been placed on record through voluminous paper book. It was submitted that the said shares were placed in to the Demat Account on 02.09.2011. Subsequently, the assessee got created another 4000 bonus shares in its Demat Account. All the above 12000 shares were transferred to another Demat account of the assessee maintained with M/s Smart Equity Brokers Limited. Necessary evidences in support of its averments have been placed on record through a paper book. The ld. Counsel argued that there is no merit in the argument of the ....
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....owever, this allegation is negated by the Securities Appellate Tribunal Mumbai, in its order dated August 28, 2023, by explicitly dismissed these allegations. The tribunal's ruling stated that there is no supporting material on record to substantiate the accusation of the company's involvement in price inflation. Moreover, the order emphasized that purchasing shares from the stock exchange platform is not unlawful, and continuous buying of shares at increased prices does not contravene any provisions of SEBI laws, particularly the PFUTP Regulations. (APB, Pgs. 76-88). 12. The Hon'ble SUPREME COURT OF INDIA in the case of Pr. CIT v. Renu Aggarwal [2023] 153 taxmann.com 579/294 Taxman 521/456 ITR 249 (SC), dismissed the SLP filed by revenue filed against the Hon'ble high court where adjudicating the matter on Section 69A, read with section 10(38), of the Income-tax Act, 1961 - Unexplained moneys (Share dealings) - High Court by impugned order held that where Assessing Officer disallowed exemption claimed by assessee under section 10(38) and made additions, alleging involvement in penny stock which were being misused for providing bogus accomodation of LTCG, h....
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....(LTCG) exemption - However, Assessing Officer held that scrip was a penny Stock and thus, he made an addition of same under section 68 - Commissioner (Appeals) observed that shares were purchased on floor of stock exchange and not from broker, payment was made through banking channel, deliveries were taken in DEMAT account where shares remained for more than one year, contract notes were issued and shares were also sold on stock exchange and, accordingly, held that there was no reason to add capital gains as unexplained cash credit under section 68 - Whether Tribunal had rightly concluded that there was no merit in appeal against Commissioner (Appeals) order - Held, yes [Para 4] [In favour of assessee]" 15. Recently, the Hon'ble Apex Court in the case of Pr. CIT v. Dipansu Mohapatra [2024] 160 taxmann.com 289/298 Taxman 194/463 ITR 681 (SC) dismissed against order of High Court that where assessee provided all details of purchase and sales of shares to AO along with contract notes for purchase and sale, demat account and bank statement and, furthermore no incriminating materials were found during survey conducted in premises of assessee, AO could not deny claim under s....