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2022 (10) TMI 565 - AT - Income TaxReopening of assessment u/s 147 - addition u/s 68 - bogus profit on sale of shares - long term capital gains earned by the assessee as from a penny stock transaction pursuant to reassessment proceedings - interim orders passed by the SEBI in case of First Financial Services Ltd. - Whether capital gains earned by the assessee is not due to any price manipulation in scrips of First Financial Services Ltd? HELD THAT:- Since, the very transaction of the assessee in the scrips of First Financial Services Ltd, which resulted in long term capital gains to the assessee, has been found to be not violative of provisions of relevant Act and Rules by the SEBI upon necessary investigation and even the initial restraint order was revoked vide interim order dated 06/09/2017, therefore, we find no basis in sustaining the impugned addition made by the AO by treating the said transaction to be a penny stock transaction resulting in bogus long term capital gains. Accordingly, we direct the AO to delete the impugned addition - Further, since the other addition by AO is also consequent to the aforesaid impugned addition, therefore, the said addition is also directed to be deleted. - Decided in favour of assessee.
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