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TMI Blog2023 (9) TMI 1214X X X X Extracts X X X X X X X X Extracts X X X X ..... see is dismissed. Addition on account of loss on sale of securities which turns into double addition in the hands of assessee - HELD THAT:- We notice that the ld. AO while framing the assessment order already disallowed a sum in the hands of assessee on account of loss of trading in shares from First Financial Services Ltd. separately and in addition in the hands of assessee which turned into double addition in the hands of assessee and same is not in accordance with law, therefore, we are not conformity with the view taken by the ld. CIT(A) by confirming the order passed by the ld. AO regarding the instant issue. Accordingly, ground taken by the assessee is allowed and addition made in the hands of assessee is hereby deleted. Addi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) ] passed u/s 250 of the Income Tax Act (hereinafter referred to as the Act ). The assessee has raised the following grounds of appeal: 1. That on the facts and in the circumstances of the case, the action of the Ld. CIT(A) to confirm the addition made by the AO of Rs. 6,43,238/- by disallowing loss on trading in shares is contrary to the material evidences on record and the addition is illegal, arbitrary and excessive 2. That on the facts and in the circumstances of the case, the action of the Ld. CIT(A) to confirm the action of the AO in making addition of Rs. 12,89,526/- on account of loss of sale of securities amounts to double addition and which is Contrary to the material evidences on record and the addition is arbitrar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee furnished various details along with its submission as asked by the ld. AO. The ld. AO after considering the various submission made by the assessee and document placed by the assessee, he viewed that loss claimed by the assessee arising out of share trading amounting to Rs. 6,43,238/- was not genuine and disallowed. Accordingly, he added to the income of the assessee. In addition to that he further found that the assessee debited a loss of Rs. 12,89,526/- on securities under the head of other expenses and the ld. AO disallowed the same and added back to the income of the assessee. Further, the ld. AO disallowed another sum of Rs. 5,775/- by applying section 14A read with Rule 8D of the Act and also added under assessed incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orted the decision rendered by the authorities below. 6. We after hearing the rival submission of the party as well as perusal of the material available on record, we notice that the assessee-company booked a loss of Rs. 6,43,238/- from the transaction of shares of First Financial Services Ltd. whereas assessee s returned income during the assessment year is only Rs. 1,36,951/-. Besides that the alleged company from which assessee booked loss is also identified one of the 84 BSE listed penny stock which have been used for generating bogus loss from share transactions as we noticed from the assessment order passed by the ld. AO and while dealing with the instant issue, similar view was taken by the ld. CIT(A) by sustaining the order passe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the addition made by the ld. AO is arbitrary and needs to be deleted by the Tribunal. 8. On the other hand, ld. DR relied on the view taken by the authorities below. 9. We after hearing the rival submission of the parties and material available on record, we notice that the ld. AO while framing the assessment order already disallowed a sum of Rs. 6,43,238/- in the hands of assessee on account of loss of trading in shares from First Financial Services Ltd. separately and in addition to that Rs. 12,89,526/- in the hands of assessee which turned into double addition in the hands of assessee and same is not in accordance with law, therefore, we are not conformity with the view taken by the ld. CIT(A) by confirming the order passed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition was done due to wrong reflection of interest income as reflected in 26AS statement of the assessee which does not belong to the assessee as the assessee has never earned such interest income from said credit entry reflected in 26AS statements and also from the statements of the ld. AR that during the intervening time, assessee has already taken appropriate corrective steps to rectify the interest income which the assessee has never earned from the said credit and reflected in 26AS statement and necessary correction has already been done in 26AS statement of the assessee relevant to assessment year in question. We find it fit to allow the grounds taken by the assessee by setting aside the addition sustained by the ld. CIT(A) of Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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