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2022 (11) TMI 414 - AT - Income TaxReopening of assessment u/s 147 - case was re-opened on the basis of third party information - Trading in shares (intra day) - allegation of transactions in penny stock scrip - unexplained income - assessee submitted that the transaction was made through Bombay Stock Exchange (“BSE”) assessees broker Jainam Share Consultants Pvt Ltd. - No payment for purchase of share was made to the broker and all the transactions were intra-day transaction and assessee earned profit on such overall transaction - HELD THAT:- AO passed his assessment order for want of reply or evidence and it is the case of assessee that he has furnished complete details regarding such transaction before CIT(A). NFAC/CIT(A) was duty bound to verify the fact and such evidence, either of his own or by seeking remand report from the assessing officer. On careful analysis of such evidence, find that the assessee has successfully prove that he has entered into intra-day transaction share of Scan Steel Ltd. Assessee has not paid the purchase cost nor received the entire sale consideration rather received the gain of Rs.1,655/- which cannot be considered as accommodation entry of gain of penny stock transaction. Therefore, direct the Assessing Officer to delete the entire addition. So far as objection raised by Ld. Sr-DR for the Revenue that assessee has made cash deposit in his bank account, find that assessee has shown such deposit as “income from other sources”. Therefore, the submission raised by Ld. Sr-DR for the Revenue is mis-placed. Assessee’s appeal is allowed.
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