2026 (9) TMI 1455

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.... A.Y. 2012-13. 2. Brief facts relevant for adjudication of the case under consideration are that, the Assessee's case was reopened u/s. 147 of the Act by issuing notice dated 30.03.2019 u/s. 148 of the Act by the ITO Ward (2) (2), Thane, mainly on the basis of information received from DDIT (Inv.) Unit, 8(3), Mumbai to the effect that a search and seizure action had been conducted by the Directorate of Investigation Wing, Mumbai, in connection with the long term capital gain scam. The beneficiaries under the perpetrators that were covered during the search operation had taken accommodation entries of bogus long term capital gain by treating various penny stocks. The Assessee has also taken accommodation entries in penny stock of M/s. Niv....

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....give you any information regarding this. And also I am not aware of any such transaction. I do not even know whether my father dealt with any such shares. Your goodself has also asked information regarding bank statement highlighting the payment for purchase of shares I have no such statement as my father use to maintain account for purchase and sale of securities so I do not even know whether my father has even purchased and sold such shares. Your goodself has asked for statement of all bank accounts for the period 01.04.2011 to 31.03.2012 so I am also attaching the same which was in my notice and maintained by me." 3. Though, the Assessing Officer (in short, the 'AO'), considered the reply of the Assessee however, fou....

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....ration to the peculiar facts and circumstances and observe from equity holdings of the Assessee with Shri Ram Insight Share Brokers Ltd., wherefrom it appears that the Assessee appears to have purchased 16,301 shares @ 144.85% and on a total consideration of Rs. 20,35,179.85/- on speculative basis having credited on dated 13.05.2011, whereas he has already sold the same on 12.05.2011 @ 124.28% and on a total consideration of Rs. 20,25,888.28/- which resulted into making loss to Rs. 9,291.57/-. However, the AO still made the addition of Rs. 20,29,292/- just on the basis of information received from the investigation wing and without any substantive material, the AO should have considered the loss of Rs. 9,291.57/- for computing the income if....