TMI Blog2018 (8) TMI 1759X X X X Extracts X X X X X X X X Extracts X X X X ..... of Unnao Industries Ltd. company but that report is against the company and not the individual who have been instrumental in getting the transactions in question matured, but AO has also not associated any of the brokers involved in the transactions of shares purchased by the assessee and subsequent sale thereof. AO has based the assessment order on preponderance of probabilities by relying upon circumstantial evidence by entirely ignoring direct evidence available in this case. AO has also not made enquiry from the father of the assessee who was Financial Adviser for the sale and purchase of the shares in question by the assessee as disclosed in the statement extracted in the assessment order. AO has also ignored the fact that there ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty to the assessee to rebut the same. 1.2 That CIT(A) has erred on facts and in law in holding as above without appreciating that the alleged penny stock were listed in a recognized stock exchange and the assessee had duly submitted all the relevant details / documents in support of his claim which were not taken cognizance by the assessing officer. 1.3 That the Ld. CIT has erred on facts and in law in holding as above without appreciating that the assessee has duly discharged his onus cast on him under section 68 of the Income Tax Act, 1961 and assessing officer has failed to bring any cogent material on record in support of his contention of treating the aforesaid long term capital gains as unexplained cash credits in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case. 5. The ld. AR for the assessee challenging the impugned order contended inter alia that the entire assessment order has been based upon the report given by the Investigation Wing of the Income-tax Department and no independent enquiry has been conducted by the AO; that all the shares have been purchased by the assessee through banking channel for which STT payment has been made which is duly reflected in the contract note itself; that the Security Exchange Board of India (SEBI) has not taken any adverse inference against Unnao Industries Ltd.; that the assessee has supplied the entire data to the assessment proceedings which have not been relied upon. 6. However, on the other hand, to repel the arguments advanced by the ld. AR f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asked to present the persons for confrontation who has given the statement of this vicious plan before the investigation wing on oath and the same is not possible at the fag end of the assessment proceedings. 8. Bare perusal of the assessment order goes to prove that the AO has botched up the enquiry by denying opportunity of being heard to the assessee who has not been allowed to cross examine the witnesses. AO has also not enquired from the Stock Exchange so as to work out if by applying the rule of circuit breaker the appreciation in shares to the tune of 29 times or 40 times in a short period is feasible, rather AO has merely relied upon report of Investigation Wing. No doubt, SEBI has not drawn any adverse inference in case of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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