TMI Blog2023 (2) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... e are of the considered view that the impugned order passed by the learned CIT(A) requires no interference and, therefore, is upheld. Accordingly, grounds raised by the assessee in this appeal are dismissed. - ITA no.1955/Mum./2022 - - - Dated:- 7-2-2023 - Shri G.S. Pannu, President, And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : None For the Revenue : Shri A.D. Chogule ORDER PER BENCH The present appeal has been filed by the assessee challenging the impugned order dated 27/06/2022 passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax (Appeals)-11, Pune [ learned CIT(A) ], for the assessment year 2013-14. 2. When this appeal was called ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n SMC group on 23/05/2012. The assessee is engaged as a labour contractor to the main assessee. For the year under consideration, the assessee filed his return of income on 10/03/2014, declaring total income at Rs.30,69,410. Thereafter, the assessment was completed under section 143(3) r/w section 153A of the Act on 27/03/2015, assessing the total income at Rs.79,51,000. Subsequently, assessee s case was reopened on the basis of information taken from ITBA through AIMS tab that the assessee has claimed exemption of long-term capital gains in share transactions, during the year under consideration, in scrips, namely, NCL Research and Tuni Textile, which are classified as a penny stock. In response to the notice issued under section 148, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Textile wherein he admitted that the stock was used as a penny stock and prizes were artificially manipulated. The Chairman and MD of Tuni Textile also admitted that the company was declared a sick unit by BIFR. The AO held that the assessee has not produced anything to substantiate the identity and creditworthiness of the purchases and has only taken a plea that it is unaware of purchases and sales executed through the stock exchange. Accordingly, the AO disallowed the exemption of long-term capital gains claimed by the assessee in scrips, namely, NCL Research and Tuni Textile, and made the addition under section 68 of the Act. 5. The learned CIT(A), vide impugned order, upheld the initiation of reassessment proceedings in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the assessment proceedings, notices u/s 142(1) were issued to the assessee on 14/06/2018, 17/08/2018, 19/09/2018 and 02/11/2018. However, the requisite information was not submitted by the assessee. Thereafter, were issued to the assessee on 05/12/2018 as well as on 19/12/2018 for recording the appellant's statement under oath. However, the appellant did not appear before him. The appellant is relying on make believe documentation for substantiating the genuineness of long-term capital gain which were filed only on 27/12/2021 i.e. at the fag end of the assessment proceedings. It is a well-established law that the make- believe are not sufficient to substantiate the genuineness of a transaction specially when there are sufficien ..... X X X X Extracts X X X X X X X X Extracts X X X X
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