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TMI Blog2020 (2) TMI 975X X X X Extracts X X X X X X X X Extracts X X X X ..... s by SEBI. The time gap involved between purchase and sale of shares is more than one year and shares were demated. In the circumstances, the transactions cannot be held as not genuine merely based on suspicion. Suspicion however, be strong cannot take the place of proof. It is settled position of law that no addition can be made on mere suspicion. Therefore, we are of the considered opinion that disallowance of claim for set off of loss in trading of the transactions cannot be upheld. Hence, we reverse the order of the lower authorities and allow the appeal of the assessee. - I.T.A. No.2432/CHNY/2018 (Assessment year : 2015-2016.) - - - Dated:- 30-1-2020 - SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iodically or ultimately settled otherwise than by the actual delivery or transfer of the commodity or scrips. (d) For that the Learned Commissioner of Income Tax (Appeals) failed to appreciate the fact that appellant had undertaken trading in shares of companies which were listed in stock exchange and documents produced by the appellant to the Assessing Officer as well as to the Learned Commissioner of Income Tax (Appeals) in the form of DEMAT statements, Contract Notes for purchases and sale of shares after payment of SIT and Bank Statements which was acknowledged both by the Assessing Officer and by the Commissioner of Income Tax (Appeals) in their respective assessment order and appeal order also establishes the fact that the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be passed as this respectful authority may deem fit . 3. The brief facts of the case are as under: The appellant is a partnership firm deriving income under the head income from house property and engaged in the business of trading in shares and securities in stock exchanges and power generation from windmills. The return of income for the AY 2015-16 was filed on 30.11.2015 disclosing total income of ₹ 2,12,62,770/-. Against the said return of income, the assessment was completed by the Deputy Commissioner of Income Tax, Non Corporate Circle-5, Chennai (hereinafter called AO ) vide order dated 26.12.2017 passed u/s. 143(3) of the Income Tax Act, 1961 (in short the Act ) at total income of ₹ 3,27,17,223/-. While d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epresentative submitted that stocks purchased and sold during the year are not penny stocks as held by the Assessing Officer. The entire transactions were done through registered broker M/s. Kodak Securities Ltd and the shares were demated and gap between purchase and sale of shares were more than one year. He further submitted that merely because companies whose shares were brought by the assessee were figuring in the list of penny stocks as per the report of Director of Investigation Wing, Income Tax Department, Kolkata per se cannot be reason to doubt the genuineness of the transaction. 6. On the other hand, the ld. Sr. Departmental Representative placed reliance on the orders of lower authorities. 7. We heard the rival submissio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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