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TMI Blog2025 (4) TMI 742X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) in deleting the additions of Rs.23,532/- 3. In this regard, we have heard the counsels for both the parties, perused the material placed on record, judgements cited before us and also the orders passed by the revenue authorities. 4. From the records, we noticed that the assessment was completed on the basis of reply received from BSE Ltd in response to the letter issued u/s 133(6) calling for information dated 15.12.2019. The AO has claimed that as per BSE data, the assessee has purchased 3606 shares of M/s Vas Infrastructure Ltd at Rs. 2,88,599/- and sold the same at Rs.3,12,131/- and accordingly booked profit of Rs.23,532/-. Consequently, the same was added to the total income of the assessee as short-term capital gain. 5. Wherea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the said period. During the enquiry, it has been analyzed that even though net worth of the company is negligible the share prices have been artif icially rigged by the group of operators to accommodate benef iciaries seeking LTCG/STCG and losses. No prudent businessman and particularly trader or investor in stock will invest in such a penny scrip which is defunct and inoperative. Further it is stated that there is no logical explanation for the rise in price of the scrip of VAS INFRA. The persons selling the scrip when the price of the scrip is high at its peak are all benef iciaries of bogus LTCG. The exit providers were not able to provide any logical explanation of the source of fund they have invested in the scrip when the price w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that it is came to notice before AO during assessment proceedings that there is no transaction pertained to VAS Infra for the year under consideration and the appellant has also not claimed exemption of LTCG u/s 10(38) of the Act during the year. During the appellate proceedings the appellant has f iled a reply of an email sent to BSE India for seeking trade details executed on the client ID of the appellant. In the reply the BSE India has conf irmed that trade executed during the year on client ID of the appellant was in the script Orissa Mine. Details of the same are as under: The appellant has also submitted computation of total income along with statement of STCG/Loss. It is seen that the appellant has claimed loss from securities ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of above discussion it is seen that the appellant has traded in script Orissa Mine and incurred loss of Rs.23532/- during the year. It is also seen that the AO has not provided copy of reply received from BSE India to the appellant during assessment proceedings and no evidence was reproduced in assessment order passed. Therefore, as per details available it is seen that the appellant has entered in the transaction in the script Orissa mine not in VAS infra for the year under consideration. It is also seen that the addition made by AO has not qualif ied with the provisions of section 149(1)(b) of the Act as income escapement was below the threshold limit of Rs.100000/- Therefore, escapement of income if any wil l be Rs.23532/- only. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable in the cases while generating bogus LTCG are not seen in this case, Ground no.1, 2 and 3 are allowed. AO is directed to reduce the income of appellant by Rs.23532/-. 7.4. The appeal of the appellant is allowed. 6. After having gone through the orders passed by Ld. CIT(A) and hearing the parties at length, we found that the assessment order was passed on the basis of surmises and without any documentary evidences to prove that the assessee ever transacted in the shares of Vas Infrastructure Ltd or earned any LTCG. Moreover, the reassessment proceedings were initiated in violation of the provisions of section 149(1)(b) of the act, therefore Ld, CIT(A) rightly deleted the additions. 7. No new documents or evidences have been bro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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