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TMI Blog2023 (9) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO made adverse comment on such evidences. CIT(A) granted relief to the assessee by taking view that assessee had filed concrete and irrefutable evidences and assessing officer merely rely on the information supplied by the Investigation Wing without making independent enquiry about the facts and genuineness of such shares transaction carried out by the assessee. It was also held by ld CIT(A) that assessing officer in the assessment order held that investigation wing had carried out detailed investigation in case of penny stock but neither the name of broker, who have done such transaction nor the name of companies which are involved such activities are mentioned in the assessment order. Thus find merits in the submissions of assessee that statement of assessee was recorded in the office Assessing Officer and no adverse was extracted in his statement. The assessee invested huge fund of Rs. 1.00 Crore in anticipation to earn good return, but the assessee suffered losses in short span of time, so he immediately sold the scrips of such shares and that transaction carried out by the assessee is genuine and cannot be doubted. Appeal of the Revenue is dismissed. - Shri Pawa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring of the appeal. 2. Brief facts of the case are that case of assessee is an individual, filed his return of income for assessment year 2014-15 on 03.11.2014 declaring income of Rs. 14,25,090/-. The case was selected for scrutiny. During the assessment, the Assessing Officer noted that assessee has shown Long Term Capital Gains (LTCG for short) of Rs. 11,17,534/- on sale of one immovable property at Samarpan, Boriwali on 05.09.2013, assessee also claimed Short Term Capital Gains ( STCG for short) on sale of three other immovable properties being No.501, 503, 1101 of Dream World. The assessee also claimed Short Term Capital loss ( STCL for short) of Rs. 25.44 lakhs, on sale of shares of different scrips. The loss of shares was set off against the capital gains of Rs. 18,83,934/- (11,17,534 LTCG + 7,66,400 STCG) and balance of loss of Rs. 6,60,471/- was claimed as carry forward. The Assessing Officer noted that the scrips in which assessee claimed STCL namely, Ravinay Trading, Swarnsarita, Turbo Tech and Kapil Cotex are featured in the list of penny stocks as reported by Investigation Wing of Income Tax Department, Kolkata. The Investigation Wing, Kolkata made a detailed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awn the conclusion of penny stocks on the basis of borrowed theory based on hypothetical accommodation theory for arranging capital gains/ loss, on the basis of so-called investigation report that scrips in which he dealt, are penny stock and not on the basis of fact of the case that assessee was having sufficient funds. The assessee made investment for attractive investment opportunities to maximise return and he invested from his surplus funds. On earlier occasion, the assessee used to invest in surplus funds in immovable properties and investment trips substantially. Assessee s friend suggested into share market to maximise the profit. Before making investment, he made through enquiry from his relatives and friends. The companies belonged to different segments like Swarnsarita Gems Ltd. was in the business of trading of gems jewellery, Ravinay Trading Company was engaged in the business of construction etc. A large sum of amount was invested in the hope of good return but after a few days, there was a downward trend in various shares. The assessee sold such shares to avoid heavy loss within a short span of time. The assessee submitted that sale and purchase was through recogni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tiate the genuineness and veracity of purchase and sales of share of Ravinay Trading, Swarnsarita, Turbo Tech and Kapil Cotex including copy of contract notes, copy of demat account, copy of bank statements and account sale and purchase. Such evidence was not rebutted or disprove by the Assessing Officer. The assessee filed concrete and irrefutable evidences and Assessing Officer merely rely on the information supplied by the Investigation Wing without making independent enquiry about the facts and genuineness of such shares transaction carried out by the assessee. The assessing officer in the assessment order held that investigation wing had carried out detailed investigation in case of penny stock but neither the name of broker, who have done such transaction nor the name of companies which are involved such activities are mentioned. The Assessing Officer on relying on case law of various Benches of Tribunal held that on the basis of evidence brought on record the impugned addition not to be sustained and allowed full relief gets assessee. Aggrieved by the order of ld. CIT(A) the Revenue has filed present appeal before the Tribunal. 7. I have heard the submission of Ld. Senior ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sale consideration was made after deduction of transaction charges. The ld AR for the assessee submits that before making investment, he made through enquiry from his relatives and friends. The companies belonged to different segments were engaged in the different business The assessee sold such shares to avoid heavy loss within a short span of time. The assessee submitted that sale and purchase was through recognized broker of Stock Exchange. The purchase and sale of shares were supported with contract notes that payment for purchase and sales were made / received through banking channel and delivery of the shares were made through demat accounts. The assessee furnished demat statement, contract notes of purchase and sale, relevant entry of bank statement. The statement of assessee was recorded the office Assessing Officer and no adverse was find in his statement. The assessee also furnished share price pattern of share indicating heavy return which influence the assessee for making such investment and summary of financial performance on major data of these companies. The assessee invested huge fund of Rs. 1.00 Crore to earn good return, but the assessee suffered losses in shor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee by taking view that assessee had filed concrete and irrefutable evidences and assessing officer merely rely on the information supplied by the Investigation Wing without making independent enquiry about the facts and genuineness of such shares transaction carried out by the assessee. It was also held by ld CIT(A) that assessing officer in the assessment order held that investigation wing had carried out detailed investigation in case of penny stock but neither the name of broker, who have done such transaction nor the name of companies which are involved such activities are mentioned in the assessment order. 11. I find merits in the submissions of the ld AR for the assessee that statement of assessee was recorded in the office Assessing Officer and no adverse was extracted in his statement. The assessee invested huge fund of Rs. 1.00 Crore in anticipation to earn good return, but the assessee suffered losses in short span of time, so he immediately sold the scrips of such shares and that transaction carried out by the assessee is genuine and cannot be doubted. 12. I find that Hon'ble jurisdictional High Court in the case of Himani M. Vakil (supra) held that wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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