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2023 (5) TMI 459 - AT - Income TaxDisallowance of exemption claimed u/s. 10(38) - Bogus LTCG - Penny stock transactions - HELD THAT:- Investigation Wing surveyed SMC global securities Ltd. and the concerned person of the said entity accepted their role in providing Accommodation Entry on syndicate. Further, the SEBI which is a premier regulatory body of share market directed BSE to suspend trading of 28 penny stock companies amongst which NCL Research & finance Ltd. is one therefore, the A.O discussed the issue in detail like that of report of Investigation wing, statement of concerned person who provided accommodation entry. The order of SEBI in suspending penny stock of those companies, who involved in ragging of prices of penny stocks companies. Therefore, as relying on case of Abhishek Ashok Lohade [2022 (11) TMI 1061 - ITAT PUNE], we find the order of CIT(A) is justified and in confirming the order of AO in denying exemption u/s. 10(38) of the Act. Thus, ground No. 1 raised by the assessee is dismissed. Addition made on account of entry of interest in Form No. 26AS - AR submits that the assessee does not know M/s. Rukmini Impex Pvt. Ltd. nor the assessee dealt any business transaction with the said company - HELD THAT:- DR did not report any objection in remanding the issue to the file of AO for verification in terms of submissions of ld. AR. Therefore, taking into consideration the facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of AO for its fresh consideration. Addition u/s. 68 - AR submits that the assessee could not identify the individual transaction - AO proceeded to add the said amount to the income of the assessee in the absence of any evidence that the same is credited in the books of accounts of the assessee - HELD THAT:- We find force in the arguments of ld. AR and without there being entry in the books of accounts, the addition made u/s. 68 of the Act is not maintainable. Therefore, in the interest of justice, we deem it proper to remand the issue to the file of AO for its fresh consideration.
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