TMI Blog2022 (5) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... tock broker of the agents and the beneficiaries are interested in having their money laundered. He has given detailed reasoning as to how the assessee has introduced her unaccounted money in the garb of Long Term Capital Gain. Nothing has been brought by the assessee before us to take a contrary view than the view taken by the ld. CIT(A) on this issue. We, therefore, uphold the order of the Ld. CIT(A) and the ground raised by the assessee is dismissed. - ITA No. 2042/DEL/2018 - - - Dated:- 25-4-2022 - SHRI R. K. PANDA, ACCOUNTANT MEMBER AND SHRI ANUBHAV SHARMA, JUDICIAL MEMBER Assessee by : NONE Revenue by : Sh. Rajesh Kumar Dhanesta, Sr. DR ORDER PER R. K. PANDA, AM, This appeal filed by the assessee is direct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form of sale of shares against payment of commission. He noted that certain brokers had admitted that they had received cash from beneficiaries including the assessee and the same was returned in the form of sale proceeds of shares with STT payment to entitle them to claim benefit of exemption u/s 10(38) of the Act. The stock bought by the assessee i.e. M/s Lifeline Drugs Pharma Ltd. was a penny stock as the company had a small capital base. The company had no profit earning apparatus and therefore vulnerable to price manipulation by the interested parties. He, therefore, confronted the same to the assessee and asked her to explain as to why the claim of deduction u/s 10(38) should not be disallowed. Rejecting the various explanation giv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iddle man arranging such purchase and sale. vi) The Assessee was not a regular investor in the shares. Therefore, the phenomenal return of 98 times on the sale of the shares of M/s Lifeline Drugs and Pharma Ltd. was astonishing. vii) These shares were sold to a broker namely SMC Global Securities Ltd. for a aggregate consideration of Rs.52,31,521/-. The Appellant computed capital gain on sale of above shares at Rs.50,63,561/- and claimed exemption u/s 10(38) of the Act as the shares were listed in the stock exchange and STT was paid on sale of these shares as per the brokers note. M/s Lifeline Drugs and Pharma Ltd. replied to the notice issued u/s 133(6) by the Assessing Officer. The Assessing Officer found that the paper work t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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