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2023 (1) TMI 1280 - ITAT MUMBAIAddition u/s 68 - transaction/trading of the scrip (M/s. VAS) was speculative in nature and due to rigging, the price of the scrip was artificially increased or decreased to accommodate beneficiaries of Long Term Capital Gain (LTCG)/loss /Short Term Capital Gain/loss - assessee brought to the notice of the AO that he is a non-resident Canadian Citizen of Indian Origin and has appointed a Professional Investment Advisor and Portfolio Manager recognized by the BSE and NSE. And that the investments/trading are carried out by the portfolio manager on behalf of assessee and as such assessee has no knowledge of this company M/s. VAS and therefore has no intention of doing the alleged money laundering HELD THAT:- This is a case wherein the Maxim- Res Ipsa loquitor-applies- meaning “Things speaks for itself”. Looking at the over-all facts it can be presumed that assessee has not indulged in any nefarious activity as alleged in the DDIT information of persons who traded in the shares of M/s. VAS. She is a Canadian Citizen of Indian Origin has suffered heavy losses to the tune of more than a crores of Rupees, and has made investment through Professional Portfolio Manager (recognized by BSE & NSE), so it cannot be presumed that she would indulge in money laundering for a mere short term capital gain of Rs.93,597/- (which has been offered to taxation) in the ROI filed on 31.07.2012. On the facts noted supra it is presumed that the assessee was an innocent/gullible regular investor in share market and has burned her fingers and made a modest gain of Rs.93,597/- which has been taxed. And the AO erred in again taxing on the basis of general investigation report which does not have any material against the assessee. It would be apt to remind ourselves that the maxim falsus in unus false in Omnibus” meaning ‘false in one thing false in everything’’ has no application in India. Merely because some person misused the share market to rig certain shares in the share market for nefarious purpose, cannot be the ground to draw adverse view against innocent regular investors like assessee. So we decline to interfere with the action of the Ld. CIT(A) who rightly deleted the addition made by the AO without an iota of evidence against the assessee and without being part of any wrong doing. So the revenue appeal is dismissed.
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