9911796707
TMI Blog2025 (4) TMI 744X X X X Extracts X X X X X X X X Extracts X X X X ..... 14-15. 2. In this case, the Assessee had purchased 36,500 shares of M/s. Santoshima Tradelinks Limited on dated 01.02.2012 on a total consideration of Rs. 7,30,000/- (@ Rs. 20 per share) by banking channel i.e. account payee cheque paid on 22.02.2022. Subsequently, the shares were dematerialized on 31.12.2012 and M/s. Santoshima Tradelinks Limited amalgamated with M/s. Sunrise Asian Limited. The Assessee held the share for around 17 months and thereafter through online platform of Bombay Stock Exchange, sold the said shares from 28.08.2013 to 22.11.2013 @ Rs. 495.48 per share approximately and on a total consideration of Rs. 1,80,85,010/- and consequently claimed the amount of Rs. 1,73,55,010/- being exempt u/s 10(38) of the Act, on accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ail, as the Ld. Commissioner affirmed the aforesaid addition on the similar footing/reasoning, as of the AO. 5. The Assessee, being aggrieved, has challenged the affirmation of the additions by the Ld. Commissioner, by filing this appeal. 6. We have heard the parties and perused the material available on record. Admittedly, as mentioned above, the Assessee held the shares for around 17 months and sold the same through banking channel and it is a fact that no action has ever been taken by the SEBI or any Investigation Agency against the Assessee herein and it is a fact that the Assessee has produced the relevant documents such as purchase bills of shares, bank account statement, DP statement and some broker notes in order to establish his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the impugned order with the assistance of the learned Counsels and we have no reason to interfere. There is a finding of fact by the Tribunal that the transaction of purchase and sale of the shares of the alleged penny stock of shares of Ramkrishna Fincap Ltd. ("RFL") is done through stock exchange and through the registered Stockbrokers. The payments have been made through banking channels and even Security Transaction Tax ("STT") has also been paid. The Assessing Officer also has not criticized the documentation involving the sale and purchase of shares. The Tribunal has also come to a finding that there is no allegation against assessee that it has participated in any price rigging in the market on the shares of RFL. 3. Therefore we f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay Stock Exchange, came to the conclusion that the price of script, which the assessee sold, was fluctuating by 24 times and after sale of shares made by the assessee, the price has reduced to Rs. 0.49. It was, therefore, submitted that the Assessing Officer, taking into consideration the volatility of the share price of the script sold by the asssessee, was justified in relying upon the report of the Investigation Wing of Kolkata as well as the fact that the SEBI has suspended the transaction of the said script for some time and accordingly, the Assessing Officer was justified in making addition of unaccounted income of the assessee on the ground of accommodation entries availed by the assessee. [15] It was further submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance was placed on the decision of this Court in the case of Jagat Pravinbhai Sarabhai (supra), wherein this Court has held as under: "5. The genuineness of investment in the shares by the assessee was substantiated by him by producing copy of transaction statement for the period from 1.6.2001 to 1.10.2010. The investment was made in the year 2000-01. The shares were retained for more than ten years and were sold after such long time. These circumstances suggested that the investment was not bogus or investment made in penny stock. The shares were purchased in order to invest and not for the purpose of earning exempted income by frequent trading in short span. 6. The finding recorded by the appellate authority and confirmed by the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of the Hon'ble Non- Jurisdictional High Court carries only an influence. The law is very well settled by the Hon'ble Supreme Court in the case of Union of India vs Kamalakshi Finance Corporation Ltd reported in 55 ELT 43 (1991) that the decision of Hon'ble Jurisdictional High Court would have higher precedence value on the Tribunal than the decision of Hon'ble Non-Jurisdictional High Court. Considering the impugned assessment order, the ld. AO has not provided any evidence even worth a name that Assessee's own money has been routed back to him. There is no nexus with the Assessee with price rigging and no adverse observation from stock exchange. The addition simply on third party statement is uncalled for. We respect ..... X X X X Extracts X X X X X X X X Extracts X X X X
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