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2020 (1) TMI 255 - AT - Income TaxBogus LTCG/STCL - trading of penny stocks - contention of the assessee is that she has purchased the shares from banking channels and as such when the purchase is genuine then the sale cannot be questioned itself - HELD THAT:- Chart of sale and purchase of shares of M/s Cressanda Solution Ltd., I am of the view that assessee has purchased shares of Cressanda Solution Ltd. Shares after suspension /revocation i.e. after February, 2013 and March, 2013, as indicated in the aforesaid Table. Hence, no plausible explanation as well as documentary evidence has been provided by the assessee to contradict this finding. Therefore, the short term capital loss on account of sale and purchase of shares M/s Cressanda Solution Ltd. is confirmed and hence, the action of the Ld. CIT(A) is hereby affirmed on this issue. As regards the balance loss for the sale and purchase of sales of Pearl Agri (15000) shares and Pearl Elec (15000) shares. After considering the written submissions alongwith the documentary evidences filed by the assessee and some chart filed by the assessee showing the STCL, AO has not asked specifically for the reasons for causing the loss with supporting evidences from the assessee and assesee has also not explained the reasons for causing the loss and supporting evidence. It would be in the interest of justice, if these issues of STCL on account of sale and purchase of shares of Pearl Agri (15000) shares and Pearl Elec (15000) shares be set aside to the file of the Assessing Officer to examine the same as per law, after giving full opportunity to the assesee with the clear directions to the AO to call for the reasons for causing the loss on account of sale and purchase of shares of two companies with the supporting documentary evidences. If the AO is satisfied with the explanation given by the assessee with the supporting evidences, then the AO is at liberty to decide the same, as per law, after giving full opportunity to the assessee to substantiate its claim.- Appeal of the Assessee is partly allowed for statistical purposes.
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