TMI Blog2022 (12) TMI 947X X X X Extracts X X X X X X X X Extracts X X X X ..... he list of the said 239 persons. As neither the Assessing Officer conducted any enquiry nor has brought any clinching evidences to disprove the evidences produced by the assessee. The report of Investigation Wing is much later than the dates of purchase /sale of shares and the order of the SEBI is also much later than the date of transactions transacted and nowhere SEBI has declared the transaction transacted at earlier dates as void . According to us, these being findings of fact, they cannot be interfered by us. We are also informed, that the appellant/revenue had preferred appeals against the very same order in the case of Ms Karuna Garg and Ms Krishna Devi [ 2022 (12) TMI 858 - DELHI HIGH COURT] - These appeals was dismissed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal via the impugned order has noted, that the assessing officer has not applied his mind, and has merely relied upon the Investigation Report. 6.1 According to the Tribunal, as to whether or not the assessee was aware of the fact that the shares of the aforementioned companies which had been bought were through penny stocks, was an issue of fact. 7. It also appears from the record, that SEBI had carried out investigations against 239 persons. 7.1 The Tribunal records, that the names of the aforementioned companies were not in the list of the said 239 persons. Paragraphs 19 to 26 bring out these core facts. For the sake of convenience, the same are set forth hereinafter: 19. We have carefully considered the orders of the aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 142 of the Act contains the provisions relating to enquiry before assessment. 23. It is provided u/s. 142. (2) of the Act that for the purpose of obtaining full information in respect of income or loss of any person, the Assessing Officer may make such enquiry as he considers necessary. In our considered view the Assessing Officer ought to have conducted a separate and independent enquiry and any information received from the Investigation Wing is required to be corroborated and reaffirm during the assessment by the Assessing Officer by examining the concerned persons who can affirm the statements already recorded by any other authority of the department. Facts narrated above clearly show that the Assessing Officer has not made any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I nor there anything on record to show that the two brokers of the appellants mentioned here in above were involved in the alleged scam. The Assessing Officer has not even considered examining the brokers of the appellants. It is a matter of fact that SEBI looks into irregular movements in share prices on range and warn investor against any such unusual increase in shares prices. No such warnings were issued by the SEBI. 26. There is no dispute that the statements which were relied by the Assessing Officer were not recorded by the Assessing Officer in the assessment proceedings but they were pre-existing statements recorded by the Investigation Wing and the same cannot be the sole basis of assessment without conducting proper enquiry a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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