9911796707
TMI Blog2024 (6) TMI 1199X X X X Extracts X X X X X X X X Extracts X X X X ..... e not correct. AO has not stated out as to how the assessee is involved in price variation of the said scrip of Turbotech Engineering Limited during that period while selling the said shares/scrip. Besides this, the suspension of the said scrip came much after selling of the said scrip carried out by the assessee. Therefore, the assessee has rightly claimed exemption u/s 10(38). AO as well as the CIT (A) has not established that the assessee was involved in the price manipulation of the sales scrip and, therefore, this cannot be treated as unexplained money u/s 69A. Reopening of the assessee s case, the reopening was properly done with proper procedure followed by the AO and, therefore, ground in that respect is dismissed but on merit i.e. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 06.2019. In response to notice under Section 148 of the Act, the assessee filed his return of income on 25.11.2019 declaring total income at Rs.1,49,070/-. Notice under Section 143(2) was issued on 05.12.2019. In response to the notices, the assessee filed submissions before the Assessing Officer. The assessee reported income from salary and other sources. The Assessing Officer observed that on 26.04.2011 i.e. during the Financial Year 2011-12 the assessee purchased 9000 shares of Turbotech Engineering Limited at the price of Rs.5/- per share. The shares were allotted by the assessee on 04.07.2013 at the total sale value of Rs.37,84,680/-. Thus, making capital gain of Rs.37,39,680/- within a period of 26 months i.e. value of the shares incr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of the assessee. 5. The Ld. AR submitted that the CIT (A) was not justified in dismissing the assessee s plea regarding reopening of the assessment under Section 148 of the Act as the same is bad in law as the reopening is only for the sake of verification and making fishing and roving enquiries. The Ld. AR further submitted that reopening was not justifiable as the assessee has given all the details while filing the return of income under Section 139(1) of the Act. As regards the merit of the case, the Ld. AR submitted that the assessee has obtained shares through Private Channel and payment to purchase the same shares of Turbotech Engineering Limited was placed before the Assessing Officer as well as before the CIT (A). The contract n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee converted them to dematerialise format for selling it on BSE plat form. In fact, the said company of Turbotech Engineering Limited was a loss making company and still the assessee sold the shares at such a higher rate was properly doubted and justified by the Assessing Officer in the Assessment Order. In respect of decision of Hon ble Gujarat High Court in case of Sandipkumar Parshottambhai Patel (supra), the scrip bearing was not related to Turbotech Engineering Limited and, therefore, the same cannot be taken into account. The ratio in fact clearly set out that the cases where the sale and purchase was genuinely done, the same should be allowed but in the present case the assessee s conduct for purchase of shares itself was no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is in fact first paid by the assessee in cash who has trusted confidence in broker but the said fact appears to be not correct. The Assessing Officer has not stated out as to how the assessee is involved in price variation of the said scrip of Turbotech Engineering Limited during that period while selling the said shares/scrip. Besides this, the suspension of the said scrip came much after selling of the said scrip carried out by the assessee. Therefore, the assessee has rightly claimed exemption under Section 10(38) of the Act. The Assessing Officer as well as the CIT (A) has not established that the assessee was involved in the price manipulation of the sales scrip and, therefore, this cannot be treated as unexplained money under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
