Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2023 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (7) TMI 1286 - HC - Income TaxBogus loss incurred in penny stock - addition made as transaction was pre-arranged as well as sham and was carried out through penny scripts companies / paper companies - ITAT deleted addition - whether the assessee genuinely purchased and sold the shares of the above referred two companies through stock exchange? - HELD THAT:- As the conclusion drawn by the AO was on the assumption that there was an agreement to convert unaccounted money by taking fictitious LTCG. On appreciation of facts, tribunal held that the decision of the AO was unsupported by any material on record and the finding was purely on assumption basis. Tribunal has also observed that the respondent had successfully discharged the initial burden cast upon it under the provisions of Section 68 - It is not in dispute that the shares of the aforesaid two companies were purchased online and the payments were made through banking channel and the shares were dematerialized and the shares have been routed from demat account and the consideration was also received through bank channels. AO does not have any independent source or evidence to show that there was an agreement between the assessee and any other party. The learned tribunal has also observed that in absence of any specific finding against the assessee, the assessee cannot be held to be linked to the wrong acts merely on the basis of surmises and assumptions. No substantial question of law.
|