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2023 (9) TMI 102 - AT - Income TaxDisallowing set off of short term capital loss on sale of shares scrips against the short term & long term capital gain - ingenuine transaction - assessee managed the loss of sale of share scrips to avoid the payment of tax on capital gain earned on sale of immovable properties - AO doubted the transaction of assessee on the basis of report of Investigation Wing Kolkata - HELD THAT:- No independent investigation was carried out the assessing officer to disprove the fact and evidence brought on record by the assessee - merely because there was allegation and investigation was done, the transactions of assessee were through recognised broker of stock exchange cannot be doubted, unless there is allegation against the broker through whom the assessee carried such transaction. Assessee has furnished complete evidence including contract note of shares, demat details, detail of bank a/c. However, no adverse evidence was brought against such evidence. Nor the AO made adverse comment on such evidences. CIT(A) granted relief to the assessee by taking view that assessee had filed concrete and irrefutable evidences and assessing officer merely rely on the information supplied by the Investigation Wing without making independent enquiry about the facts and genuineness of such shares transaction carried out by the assessee. It was also held by ld CIT(A) that assessing officer in the assessment order held that investigation wing had carried out detailed investigation in case of penny stock but neither the name of broker, who have done such transaction nor the name of companies which are involved such activities are mentioned in the assessment order. Thus find merits in the submissions of assessee that statement of assessee was recorded in the office Assessing Officer and no adverse was extracted in his statement. The assessee invested huge fund of Rs. 1.00 Crore in anticipation to earn good return, but the assessee suffered losses in short span of time, so he immediately sold the scrips of such shares and that transaction carried out by the assessee is genuine and cannot be doubted. Appeal of the Revenue is dismissed.
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