TMI Blog2023 (1) TMI 1280X X X X Extracts X X X X X X X X Extracts X X X X ..... half 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 cap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made by the AO u/s 68 of the Income Tax Act, 1961 (hereinafter the Act ) of Rs.11,59,966/-. 3. Brief facts of the case are that the assessee an individual who is a Canadian Citizen of Indian Origin, had filed his/her return of income on 31.07.2012 declaring total income at Rs.41,850/-. The return was processed u/s 143(1) of the Act whereby the return of income was accepted on 09.02.213. Thereafter, the AO issued notice u/s 148 of the Act vide notice dated 31.03.2019 (time barring last date of six (6) years). The AO has resorted to re-open on the basis of report from the DDIT(Inv.) that the assessee during the year under consideration has transacted penny-stock/scrip of M/s. VAS Infrastructure Ltd. (hereinafter M/s. VAS ). The AO n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire sale consideration from this scrip to the tune of Rs.11,59,966/- u/s 68 of the Act. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) wherein the assessee brought to the notice of the Ld. CIT(A) that in the year under consideration that the assessee has made a loss of Rs.1.07 crores consisting of short term capital loss of Rs.24,73,418/- and long term capital loss of Rs.82,87,928/-. Thus, total capital loss was to the tune of Rs.1,07,61,346/-. The assessee also brought to the notice of the Ld. CIT(A) that assessee s investments were handled by Professional Investment Advisor and Portfolio Manager namely M/s. Wealth Strartz Consultants Pvt. Ltd. and trading has been done through broker Shri Kantilal Chhaganlal Securi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the year under consideration, the assessee incurred loss of Rs.1.07 crores and has invested in several blue chip companies including Reliance, Vipro etc along with M/s. VAS; and in the year under consideration has traded in the shares of M/s. VAS Infrastructure which was bought between 24.10.2010 to 03.11.2010 for Rs.10,62,216/- and sold the same between 07.04.211 to 05.12.2011 for Rs.11,55,812/- and thus made modest short term capital gain of Rs.93,597/- which was duly offered for taxation in the return of income filed on 31.07.2012. Later on, on 31.03.2019 (time barring date of six (6) years), the AO had re-opened the assessment under 147 of the Act by issuance of notice u/s 148 of the Act. The AO relying merely on the DDIT(Inv.) repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent/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 w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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