TMI Blog2022 (3) TMI 423X X X X Extracts X X X X X X X X Extracts X X X X ..... that the jurisdiction invoked by the Ld. PCIT is invalid as the Ld. PCIT has failed to demonstrate as to how the order of AO is erroneous and what prejudice has been caused to the revenue when there is no sale of shares as observed by the ld PCIT. Besides the AO after examining the share transactions has taken a possible view and made addition in respect of entire sales consideration resulting from shares sold during the year and also made addition in respect of commission on accommodation entries as the entire sales consideration was treated as bogus. We are inclined to hold that the revisionary jurisdiction of the Ld. PCIT is invalid and accordingly the order passed by Ld. PCIT is hereby quashed. - Decided in favour of assessee. - ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... should not be revised as the order is erroneous and prejudicial to the interest of the revenue. The show cause notice was replied by the assessee by submitting that whatever shares were sold during the year by the assessee were duly disclosed in the return of income. The assessee submitted that the long term capital gain of ₹ 5,67,41,214/- was calculated on the said shares and was duly disclosed in the return of income and AO in the assessment order in para 4 to 9 at page No.2 discussed the issue in detail. The assessee submitted that the AO added a sum of ₹ 5,96,25,721/- towards the bogus sales consideration on account of sale of 9,53,600 equity shares of M/s. Greencrast Financial Services Ltd. and thus the remaining unsold 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring both the parties and perusing the material on record, we find that the assessee has sold 9,53,600 shares during the year for the consideration of ₹ 5,96,25,721/- of M/s. Greencrast Financial Services Ltd and calculated long term capital gain accordingly which was claimed as exempt under section 10(38) of the Act. In the assessment proceedings, the AO was of the view that the shares sold by the assessee belonged to penny stock company and thus treated the same as non genuine and bogus accommodation entry and also added the same to the income of the assessee by framing assessment under section 143(3) of the Act dated 19.12.2017. We note that unsold shares 10,46,400 were shown in the closing balance at the year end and were sold in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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