TMI Blog2023 (6) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ion, and on the basis of incorrect understanding of the relevant facts. Accordingly, we overturn the findings returned by the AO and CIT(A) that the transactions entered into by the Assessee resulting in Long Term Capital Gains in the hands of the Assessee in respect of shares of M/s Aricent Infra Limited was not genuine transaction and delete addition u/s 68 - Decided in favour of assessee. - ITA No. 407/MUM/2023 - - - Dated:- 25-4-2023 - SHRI B. R. BASKARAN , ACCOUNTANT MEMBER And SHRI RAHUL CHAUDHARY , JUDICIAL MEMBER For the Appellant/Assessee : Shri Amit Shah For the Respondent/Department : Ms. Naina K. Kumar ORDER Per Rahul Chaudhary, Judicial Member : 1. By way of the present appeal the Appellant has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case and in law, the learned CIT(A) erred in confirming the addition of Rs. 6,150/- u/s 69C of the Income Tax Act and the said addition should be deleted. 3. The relevant facts in brief are that for the Assessment Year 2012-13, the Assessee, an individual, did not file its return of income. On the basis of information received from Investigation Wing, Thane forwarded by DIT (Investigation), Pune, the Assessing Officer came to know that the Assessee had sold shares of M/s Aricent Infra Limited (formerly known as TCL Technologies Ltd.), a script alleged to be a penny-stock in which synchronized purchase and sale of shares had taken place. On examination of the trade data of M/s Aricent Infra Limited, the Assessing Officer found tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the total income of the Assessee at INR 3,13,715/- as against returned income of INR 70/- after making addition of INR 3,07,495/- under Section 68 of the Act and INR 6,150- under Section 69C of the Act. 5. Being aggrieved, the Assessee preferred an appeal before CIT(A) and placed following facts before the CIT(A), which have reproduced in paragraph 4 of the order passed by the CIT(A), the relevant extract of the which read as under: 4. Appellant s submission: During these appeal proceedings 1. xx xx 2. The case was reopend Share application for Equity shares each of Rs 10/- of Toshika Chemicals Ltd now known as Aricent Infra Ltd, was made by the appellants parents around June, 1995 3600 shares were allotted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, the appellant is in appeal before your Honour. 6. The CIT(A), not being convinced, dismissed the appeal preferred by the Assessee vide order dated 13/12/2022. 7. Being aggrieved, the Assessee has preferred the present appeal before the Tribunal against the above order passed by the CIT(A). 8. We have heard the Ld. Departmental Representative and the Assessee who appeared in person and placed on record written submissions and paper book. We have also perused the material on record and the judicial precedents relied upon by the CIT(A). We find that the Assessing Officer had proceeded on incorrect premises that the shares of M/s Aricent Infra Limited were purchased by the Assessee during the relevant previous year. Perusal of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... name of Rajnikant Somchand Shah as the first holder along with photocopies of Shares Certificates of Toshika Chemicals Ltd. held in the names of Mrs. Virmatiben Rajnikant Shah and Rajnikant Somchand Shah - Photocopy of Demat Transaction Statement of Rajnikant Somchand Shah for the period 01/10/2011 to 31/12/2012 dated 04/01/2012 showing transactions of TCL Technologies along with Demat Charges bill dated 03/01/2012 for the period 01/12/2011 to 31/12/2011. - Photocopy of Demat Transaction Statement of Rajnikant Somchand Shah for the period 01/01/2012 to 31/01.2012 dated 02/02/2012 showing transactions of TCL Technologies along with Demat Charges Bill dated 02-02-2012 for the period 01-01-2012 to 31-01-2012 Photocopy of Dem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Assessee during the Financial Year 2011-12. In paragraph 11.1 of the Assessment Order, the Assessing Officer has recorded as under: 11.1. Assessee has purchased shares of above company during FY 2011-12 when company does not having any substantial profit. When financial results of M/s Aricent Infra Ltd. are not splendid and no chance of lucrative gains at the stage of purchase of its shares is a predetermined action on his part leading to subsequent path to acquire STCG by way of dubious methods. This predetermined action with specific intention is one of the circumstantial evidence leading to the conclusion that STCG. (Emphasis Supplied) 10. The above findings of the Assessing Officer are contrary to the material on reco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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