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2019 (1) TMI 261 - AT - Income TaxBogus LTCG - addition u/s 68 - exemption u/s.10(38) denied - addition on Investigation Report said to be received by the AO from Investigation Wing Department at Kolkata - assessee purchased and sold the shares of M/s.Kailash Auto Finance Ltd.held to be a Penny Stock Company - Held that:- It is not known, how the Department is claiming M/s.Kailash Auto Finance Ltd., is a Penny Stock Company. We have to ascertain who authorized the registration of such company, which is a Public Limited Company, and who authorized for listing of such company in the Stock Exchange. Blaming the innocent investor, as if, he invested in the Penny Stock Company may not serve any purpose. There should be thorough investigation and bring the facts on record, how these companies were registered by the Registrar of Companies and allowed to issue public shares so as to invite the general public for investment. Unless and until, these facts are brought on record, the claim of the assessee cannot be doubted. The role of the assessee in promoting the said company, inflating the price of the shares also needs to be examined. Accordingly, the orders of authorities below are set-aside and the entire matter is remitted back to the file of the AO. - Appeal filed by the assessee is allowed for statistical purposes.
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