9911796707
TMI Blog2022 (12) TMI 858X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Income Tax Appellate Tribunal ('ITAT') in ITA No. 2772/Del/2019 for the Assessment Year 2015-16. 2. Learned counsel for the appellant states that the ITAT has erred in deleting the additions of Rs.1,60,18,923/- as unexplained credit under Section 68 read with Section 115BBE of the Income Tax Act, 1961 ('the Act') on account of bogus Long-Term Capital Gain on sale of penny stock company namely M/s Goldline International Finvest Ltd. on the ground that the assessing officer has not made independent enquiry. 3. Though Revenue has mentioned in the present appeal that the issue involved is covered by the judgment of this Court in Suman Poddar v. ITO 423 ITR 480, wherein appeal of the Assessee was dismissed taking judicial notice of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taxes. The AO extensively relied upon the search and survey operations conducted by the Investigation Wing of the Income Tax Department in Kolkata, Delhi, Mumbai and Ahmedabad on penny stocks, which sets out the modus operandi adopted in the business of providing entries of bogus LTCG. However, the reliance placed on the report, without further corroboration on the basis of cogent material, does not justify his conclusion that the transaction is bogus, sham and nothing other than a racket of accommodation entries. We do notice that the AO made an attempt to delve into the question of infusion of Respondent's unaccounted money, but he did not dig deeper. Notices issued under Sections 133(6)/131 of the Act were issued to M/s Gold Line Intern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or evidence to show that there was an agreement between the Respondent and any other party, prevailed upon the ITAT to take a different view. Before us, Mr. Hossain has not been able to point out any evidence whatsoever to allege that money changed hands between the Respondent and the broker or any other person, or further that some person provided the entry to convert unaccounted money for getting benefit of LTCG, as alleged. In the absence of any such material that could support the case put forth by the Appellant, the additions cannot be sustained. 12. Mr. Hossain's submissions relating to the startling spike in the share price and other factors may be enough to show circumstances that might create suspicion; however the Court has to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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