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TMI Blog2023 (8) TMI 1611X X X X Extracts X X X X X X X X Extracts X X X X ..... ication in treating the LTCG as unexplained cash credit in absence of any cogent evidence.
Addition of undisclosed income u/s 68 is deleted. Considering as have accepted the LTCG by deleting the addition made under section 68, therefore the addition of alleged commission payment is also deleted. This ground of assessee is allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... is recorded in para-13 of assessment order. The assessee submitted that she purchased 1000 shares @ Rs. 35/- per share of Pyramid Trading & Finance Ltd. on 03.12.2012 having face value of Rs. 10/- per share which were sent to RTA for transfer on 31.01.2013. The said company declared bonus in the ratio 1:7 on 14.02.2013 accordingly allotted 7000 bonus share and assessee became owner of 8000 shares thereafter shares were splitted into and holding became 80000 shares out of which assessee sold 30000 shares in financial year 2013-14 and sale transaction was received in last week of March, 2014 and consideration was not received till 31st March 2014. Thus, the gain on sale of shares was accounted in financial year 2014-15 on received basis. The shares of Mishka Trading & Finance Ltd., was listed in a recognized Stock Exchange and transaction was confirmed by BSE and broker M/s Edelweiss Stock Broking Ltd., and shares were held in demat account for more than 12 months. The transactions were conducted through banking channel. The assessee was also holding shares and securities apart from shares of assessee has exempt income from capital gains in earlier year as well. The assessee is main ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... NFAC/Ld. CIT(A) confirmed the action of Assessing Officer without appreciation of facts in a single sentence. The Ld. AR for the assessee submits that assessee furnished completed details about LTCG earned on sale of share held more than 12 months and payment made through banking channel. The assessee has paid security transactions tax (STT) and surplus earned on such sale was claimed as exempt income under section 10(38) of the Act. The sale of shares was made through BSE and all necessary evidence to substantiate the genuineness of such transactions were furnished before lower authorities. The Ld. AR for the assessee submits that assessee furnished letter from RTA in the name of assessee and evidence of issuing of bonus share, copy of demat account, intimation of RTA for splitting shares, all contract notes, holding no descriptions in all evidence were identified by Assessing Officer and no adverse comment on such evidence were made by Assessing Officer. The Assessing Officer mainly acted on the report of Investigation Wing, Kolkata, copy of such Investigation Wing was never supplied to assessee. The Ld. AR for the assessee submits that Assessing Officer in his show cause notice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee failed to disclose how she came to know about such company provided higher profit on sale of their shares and all transactions shown by assessee are nothing but a bogus penny stock share transaction. 8. In short rejoinder, Ld. AR for the assessee submits that assessee has purchased shares of listed company and SEBI made full-fledged investigation vide order dated 05.10.2017 where clearly held that assessee and her share broker has no role in price manipulation. Mere allegation of price increase cannot be a ground for doubting such transactions when the entire trans are supported with evidence and no adverse materials were brought on record against such evidence. 9. I have considered the submission of both the parties and perused the order of lower authorities carefully. I find that the Assessing Officer doubted the transaction of assessee on the basis of report of Investigation Wing Kolkata. I further find that SEBI has initiated investigation in respect of Mishka Finance & Trading Ltd. I find that merely because there was allegation and investigation was done by SEBI against the company and assessee cannot be said to have enter into ingenuine transactions. So far as assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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