2026 (9) TMI 365

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....rounds of appeal on record. 2. The Ld. Counsel for the assessee submitted that the facts and circumstances and the issue involved in both these appeals are absolutely identical and the basis of additions are also same. He submitted that the Department had failed to bring out any direct involvement of the assessee for obtaining alleged bogus LTCG. Neither the A.O or the Ld. CIT(Appeals)/NFAC has brought on record any evidence to suggest that the assessee was part of organized financial crime or that the assessee willfully transacted with the brokers, entry provider in order to obtain the so called bogus LTCG as had been alleged by the Department. The Revenue has not even brought out whether it is an isolated transaction or that the assess....

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....ds of the assessee observing that the said scrips of 'NCL' was rigged scrips which was used as modus-oparandi to provide bogus LTCG/loss to the beneficiaries through entry provider, share brokers, money launders in an organized racket to evade taxes. [Para 6] ■ As per the report of the Investigation Wing, Kolkata regarding various penny stocks companies, one such penny stock scrip was 'NCL', in which, the assessee had traded in. Facts further reveals that as emanating at Para 5.6 of the order of the Commissioner (Appeals)/NFAC that purchase and sale of shares were made through stock exchange and STT which was duly paid. Shares were reflected in Demat account and payments were made through banking channels. How....

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....sessee was regularly purchasing and selling shares. Therefore, the revenue authorities have failed to bring out any direct nexus of the assessee in share rigging activities through 'NCL' and the malafide benefit that was alleged to have been received by the assessee. In fact, the assessee had submitted that she was not aware regarding the fact that such 'NCI: scrip was rigged one and the assessee was unaware of the financial position and business activities of the said company. The revenue has also not disputed the claim of the assessee that the shares transacted were reflected in the Demat account and payments were made through banking channels. [Para 8] ■ Only reason for addition made by the revenue was that the....