9911796707
TMI Blog2022 (11) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of loss of Rs.18,57,032 which was incurred on sale of shares of Vas Infrastructure Limited and such disallowance of loss is required to be deleted. 3. The appellant craves to add, amend, alter, delete and / or modify the aforesaid ground of appeal." 3. The assessee is engaged in the business of shares and securities and trades in shares of various companies and income / loss earned therefrom is shown as business income. The assessee filed return of income for A.Y. 2011-12 on 30.09.2011 declaring total loss of Rs. 60,36,102/-. The Assessing Officer observed that the assessee company sold shares of VAS Infrastructure Pvt. Ltd. and total sale value for A.Y. 2011-12 is Rs. 39,08,227/-. The Assessing Officer further observed that M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed money. The Ld. AR submitted that in response to the said notice, the assessee filed reply with supporting documents justifying the sales value of Rs. 3,91,53,964/- for shares of VAS Infrastructure Ltd. Accordingly, the assessee submitted Broker's ledger in company's books and company's ledger in Broker's books alongwith copy of Demat Statement. Further, statement of Script wise purchase of Rs. 1,30,65,77,936/- and sales of Rs. 1,30,96,43,951/- of shares alongwith opening stock and closing stock of such shares were submitted which tallies with script wise total shares Purchase of Rs. 1,30,40,61,948/- (1,30,65,77,936 - 25,15,988) and script wise total shares sale of Rs. 1,30,71,37,518/- (1,30,96,43,951 - 25,06,434) shown in Audited Account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... determined by SEBI after certain investigation in market operation of that Company's pricing during financial year which is beyond financial year 2011-12 and thus when the assessee had entered / executed trade in such share, at that time the said script was not categorised as "PENNY STOCK" but it was normal script as traded by the assessee along with other 90 scripts during the year and that too with different brokers. Thus, the assessee has not done transaction in VAS Infrastructure Ltd. with any ulterior motive but had traded in such script alongwith so many other scripts as observed from the statement of script wise purchase / sales submitted before the Assessing Officer. The Ld. AR further submitted that the trading in such script is ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce of Rs. 18,57,032/- on account of Loss on sales of penny stock shares made by the Assessing Officer be deleted. The Ld. AR relied upon the following decisions: i. Pratik Suryakant Shah (2017) 77 taxmann.com 260 (Ahd. Tri.) ii. CIT vs. Maheshchandra G. Vakil (2013) 40 taxmann.com 326 (Guj.) iii. PCIT vs. Vineet Sureshchandra Agarwal Tax Appeal No. 645 of 2017 (Guj. HC) iv. Sandipkumar Parsottambhai Patel vs. ITO (2022) 137 taxmann.com 373 (Surat Tri.) v. Smt. Karuna Garg vs. ITO (2019) 109 taxmann.com 403 (Del. Tri.) 6. The Ld. DR submitted that the scripts of M/s VAS Infrastructure Ltd. were manipulated to generate bogus gains/loss and the assessee was also one of the beneficiaries in accordance with the report of investig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s script/shares. The assessee purchased shares online through various brokers and the payments made to brokers are reflected in the bank account. These details were also before the Assessing Officer. The assessee has DP accounts with all the brokers and the proof of payment of Securities Transaction Tax duly paid as per the contract note was also submitted before the Assessing Officer. The assessee has transferred the shares through online platform of stock exchange that to through broker. The investigation wing report nowhere stated that the script of M/s VAS Infrastructure Ltd. is blacklisted. In fact, the report of investigation wing is much later than the dates of purchase /sale of shares and the order of the SEBI is also much later tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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