9911796707
TMI Blog2023 (2) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... ects were not considered by the AO but has only relied upon various decisions. CIT(A) simply stated that the assessee was not related to that company of which shares has been purchased and hence shares can be held in physical form and the payment of sale of shares have also been received through banking channels but in fact the contract note provided by the assessee the details of M/s. Gemstone Investment Limited except for few transactions that of 5000 scrip taken on 26.06.2009. Subsequent holding statement of M/s. Gemstone Investment Limited that of 50000 quantity dated 31.12.2010 has given description of the rate at Rs. 8.49. The broker statement from 01.03.2011 to 31.03.201 has quoted the same but from 01.03.2010 to 31.03.2010 the 5000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m Capital Gain earned by the assessee from sale of shares of penny scrip i.e. M/s. Gemstone Investment Limited (GIL) is genuine income. 3. The Ld. CIT(A) had erred in facts and in law holding that the Long Term Capital Gain earned by the assessee is genuine, totally ignoring the financial strength of the company as well as the facts that the company did not undertake substantial business activity. 4. on the facts and circumstances, the ld. CIT(A) ought to have upheld the order of the u/s. 143 r.w.s. 147 of the Act passed by the Assessing Officer. 5. It is therefore prayed that the order of the Ld. CIT(A) may be set aside and that of the order of the Assessing Officer be restored to the above extent. 6. It is further prayed that the present ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 010 and Rs. 6/- in March 2011. The sharp changes in share prices are not in consonance with the companies any actual activities or financial modulation. Thus, the assessee has booked bogus LTCG to the extent of Rs. 9,09,500/- for A.Y. 2012-13. The Assessing Officer made addition of Rs. 6,76,623/-. 4. Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) allowed the appeal of the assessee. 5. Ld. AR submitted that the scrip in the present case is invested with M/s. Gemstone Investment Limited which was banned for trading in certain penny stocks vide SEBI order No.WTM/RKA/EFD-DRA-II/06/2016 including M/s. Gemstone Investment Limited. The Assessing Officer in the present A.Y. has given the profits and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also quoted the investigation carried out by SEBI in respect of M/s. Gemstone Investment Limited and the order passed by the SEBI. These aspects were not considered by the Assessing Officer but has only relied upon various decisions. The CIT(A) simply stated that the assessee was not related to that company of which shares has been purchased and hence shares can be held in physical form and the payment of sale of shares have also been received through banking channels but in fact the contract note provided by the assessee the details of M/s. Gemstone Investment Limited except for few transactions that of 5000 scrip taken on 26.06.2009. Subsequent holding statement of M/s. Gemstone Investment Limited that of 50000 quantity dated 31.12.2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of DCIT vs. Vijay Pal Singh (2021) 130 taxman.com 292 (SC) as well as O.M. F. No.279/Misc./M-93/2018-ITJ(PT) and Circular No.23 of 2019 as well as Circular No.17 of 2019. All these case laws as well as the Circulars mentioned by the assessee will be applicable when the assessee has given the foolproof evidence to the effect that the scrip was genuinely purchased and was properly moved and there was no collusion in respect of the price variations on behalf of the assessee. The assessee has not given each and every details about the same. Therefore, the CIT(A) was not right in deleting the addition. Hence, appeal of the Revenue being ITA No. 508/Ahd/2020 is allowed. 7. As relates to ITA No.506/Ahd/2020 the scrip is same and the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
