TaxTMI 
TaxTMI 
2025 (9) TMI 1821
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....of the case and in law the Ld. CIT(A) erred in deleting the addition of Rs. 2,20,137/made on account of unexplained cash credit under section 68 of the Income Tax Act, 1961 by observing that the assessee has established the genuinity of the share transaction and established the identity and creditworthiness aspects as well through supporting documents without appreciating the facts and findings well elaborated by the Assessing Officer that the report of the Investigation Wing clearly mentions that how the scrip of Safal Herbs was rigged and was used to provide entry in the form of exempt income under section 10(38) of Income Tax Act, 1961. It has also not been appreciated by the Ld. CIT(A) that the assessee has failed to furnish Form 10DB a....
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....ved upon the assessee. The Assessing Officer after considering the materials available on record noted that during the year under consideration, the assessee had invested in shares of M/s. Safai Herbs Ltd and declared and claimed exempt capital gain of Rs. 1,24,465/-. Thereafter, the Assessing Officer considering the information from the Investigation Wing, Ahmedabad, came to the conclusion that the transaction pertaining to the purchase and shares of M/s. Safai Herbs Ltd as undertaken by the assessee was not a genuine transaction. Therefore, he held it as a penny stock and added back the same amount to the income of the assessee. Aggrieved by this order, the assessee preferred appeal before the Ld. CIT(A) who also deleted the addition and ....
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....him, deleted the addition by observing as under: - "5.3 Ground no. 5, 6 & 7: In these grounds No. 5, 6 and 7, the appellant had challenged the assessing officer's action in denying the claim of LTCG claimed by the appellant of Rs. 2,20,137- and treating the same as addition to the appellant's income u/s. 68. These grounds no. 5, 6 & 7 are therefore taken up collectively and adjudicated as hereunder. In the assessment order, the assessing officer had made the addition of Rs. 2,20,137/- on the basis of the report of the Investigation Wing and had come to the conclusion that the identity, genuineness and creditworthiness for the sum received by the appellant has not been established. However, vide his written submission in reply dated....
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....ra) in para no. 12, the Tribunal has referred to the decision of the Co-ordinate Bench rendered in the case of Sonal Snehal Shah, in ITA. No. 1653/Mum/2024, wherein the Tribunal has observed as under: - "Even otherwise on the merits of the case, the learned AO was confronted with all the evidences available with the assessee of purchase, dematerialization, sale, transaction by cheque. The names of all the persons from boom the assessee has purchased the shares, the manner of purchasing the shares and how assessee has sold the shares and through which broker assessee has sold the shares are provided to the AO. The learned AO did not make any enquiry and merely on the basis of the report of investigation wing confirmed the addition u....