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TMI Blog2024 (8) TMI 1008X X X X Extracts X X X X X X X X Extracts X X X X ..... 1-12. 2. In this appeal, the assessee has raised the following grounds:- "1. On the facts and in the circumstances of the case and in law, the faceless Ld CIT(A) has erred in confirming the addition made by the Ld Assessing Officer, of Rs. 77,79,564 being Rs. 73,86,255 plus 5% commission as income from other sources, instead of accepting the short-term capital gains of Rs. 21,69,2115 as declared in the return of income. 2. On the facts and in the circumstances of the case and in law, the faceless Ld CIT(A) erred in uploading the order of equally the Ld A.O. in reopening the assessment under section 147 when there was no income that had escaped assessment. 3. On the facts and in the circumstances of the case and in law, the faceless ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The appellant craved leave to add, alter, amend or withdraw all or any of the foregoing grounds of appeal herein and to submit such statements, documents or papers considered necessary either at or before hearing of the appeal." 3. The only grievance raised by the assessee, in the present appeal, is against the addition made under section 68 of the Act by treating the short- term capital gains earned by the assessee from sale of shares as bogus. 4. The brief facts of the case are that the assessee is an individual and for the year under consideration filed its return of income on 25/07/2012 declaring a total income of INR 26,71,714. During the year, the assessee earned income from salary, short-term capital gains, and income from ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inancial year 2012-13 it had come down to INR 12.90. The AO also took into consideration the statements of certain exit providers recorded under section 131 and the statement of director of M/s VAS Infrastructure Ltd. recorded by Mumbai Investigation Wing. The AO after considering the aforesaid statements came to the conclusion that the director of the company has no explanation about the trading of the company. Further, by analysing the financial statements of the company and comparison of the past earning growth, the AO treated the transaction by the assessee as bogus and the entire sale consideration of the above transaction and 5% commission thereon is added to the total income of the assessee under the head "income from other sources" ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done through a sub-broker who had also made several trades for the assessee in the aforesaid scripts. During the hearing, the learned AR referred to the contract notes, copy of account to the broker, and statement of bank account pertaining to the impugned transaction. 7. At the outset, we find that in the present case return of income filed by the assessee was not selected for scrutiny. The AO based on the information received from the DDIT(Investigation), Unit-6(2), Mumbai initiated the reassessment proceedings. We are of the considered view that the said information constitutes new and tangible material for initiating the reassessment proceedings in the case of the assessee and on the basis of the aforesaid information, the AO initiate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interest under section 234 A/B/C of the Act. However, we find that the AO without considering the aforesaid submission or the details furnished by the assessee regarding its transaction in VAS Infrastructure Ltd made the impugned addition. We further find that the AO has referred to statements of certain exit providers recorded by the Investigation Wing. However, no information is brought on record by the Revenue whether these individuals are the exit providers for the assessee. 9. We find that the learned CIT(A) though referred to the aforesaid submissions on pages 5-6 of the impugned order, however, only commented on the volatility in the price of the scrip and did not analyse the details furnished by the assessee. We further find that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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