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TMI Blog2022 (11) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... panies through recognized stock exchange, but that itself is not a ground to accept arguments of the assessee when other evidences clearly prove that these shares were used to provide accommodation entries to various beneficiaries. Therefore, we are of the considered view that neither assessee nor the AO has conclusively proved their case with necessary evidences. Hence, we deem it appropriate to set aside the issue to the file of the AO and direct the AO to provide necessary information used against assessee to take an adverse view on capital gain derived from sale of shares of two companies and further provide an opportunity of hearing to the assessee to refute allegations made by the Department and also if necessary to cross-examine the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... online after payment of Security Transaction Tax and as such the denial exemption is completely unsustainable and unwarranted. 4. That on the facts and in the circumstances of the case and in law, the CIT(A) failed to appreciate that the AO has denied the claim of exemption under section 10(38) of the Act on the basis of assumptions/ presumptions/ conjectures and surmises and without any direct evidence. 5. That on the facts and in the circumstances of the case and in law, the CIT(A) AO grossly erred in treating the sum of Rs.9,14,581/- as undisclosed income under Section 68 of the Act. 6. That on the facts and in the circumstances of the case and in law, the CIT(A) ought to have appreciated that the Appellant has purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO having not mentioned a single word about RISA International Ltd, CIT(A) erred in confirming the denial of exemption under section 10(38) of the Act. 12. The Appellant prays for leave to add, alter, amend, substitute, rescind, modify and/or withdraw in any manner whatsoever all or any of the foregoing grounds of appeal before or at the hearing of the appeal. 3. The brief facts of the case are that the assessee is an individual filed his return of income for the AY 2014-15 on 13.12.2014 admitting total income of Rs..8,23,790/-. During the Financial Year relevant to the assessment year 2014-15, the assessee has declared long term capital gains from sale of shares and claimed exemption u/s.10(38) of the Act. The case has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h, a broker registered under Bombay Stock Exchange (in short BSE ) and also sold shares through M/s.Globe Capital Market Ltd. a registered broker with BSE. Payment for purchase and sale of shares is through proper banking channel. Therefore, merely for the reasons that there is a scam in Kolkata and some persons are involved in providing accommodation entries, the assessee cannot be considered as part of that scam and also benefitted from the modus operandi of accommodation entry providers. In this regard, he relied upon the decision of Chennai Bench in the case of Mr.Ashwin Kumar v. ITO in ITA No.2299/Chny/2017 and also the decision of coordinate bench in the case of Mrs. Neeta Bothra v. ITO in ITA Nos.2507 2508/Chny/2018 dated 08.09.20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company shares. However, the investigation report as well as the AO is silent on the role of the assessee in the alleged scam in converting unaccounted income into genuine long term capital gains. Except stating that the assessee is one of the beneficiary of alleged bogus long term capital gains transaction of these two companies, but nothing was brought on record to link the transaction of the assessee with investigation report as well as any other evidences which suggest that the assessee is also part of that group of people who were involved in alleged scam. At the same time, although, the assessee claims to have purchased and sold shares of two companies through recognized stock exchange, but that itself is not a ground to accept argum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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