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2018 (12) TMI 1652 - AT - Income TaxReopening of assessment u/s 147 - exemption u/s 10(38) denied - investment in a penny stock company - as per AO capital gain arose during the year under consideration on the sale of shares, therefore, AO has rightly reopened the assessment for the year under consideration - HELD THAT:- From the material available on record it appears that a copy of information said to be received from the Investigation Wing of the Department at Kolkata was not furnished to the assessee. It is not brought on record the relationship of the assessee with the promoters of M/s Concrete Credit Limited. It is also not brought on record the role of the assessee in promoting the company, namely, M/s Concrete Credit Limited, issue of public shares, inflation of price of shares, etc. In those circumstances, this Tribunal is of the considered opinion that the matter needs to be re-examined by the AO. Accordingly, the orders of both the authorities below are set aside and the entire issue is remitted back to the file of the AO. AO shall bring on record the role of the assessee in promoting the company and relationship of the assessee with other promoters, role of the assessee in inflating the price of shares, etc. AO shall also furnish a copy of the report said to be received from the Investigation Wing of the Department at Kolkata to the assessee and thereafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessee. - Appeal of assessee for statistical purposes.
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