9911796707
TMI Blog2025 (1) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... II. That the Ld. PCIT has erred in not appreciating the fact that the reopening of assessment of the Assessee was done for the sole reason of report from Investigation Wing Kolkata regarding Trinity Tradelink being a penny stock and the same report is relied upon by the PCIT for invoking the provisions of section 263 of the IT Act, 1961. III. That the Ld. PCIT has erred in not appreciating that the Ld. A.O. has sought detailed response and documents from the Assessee to prove the genuineness of the trades placed by the Assessee in the scrip Trinity Tradelink Ltd vide its notice u/s 142(1) of the Act, 1961 dated 25.01.2022 & 10.03.2022 and the Assessee duly provided the computation of income, proof of purchase of equity shares, Demat Stateme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is not a shell company. IX. That the Impugned Order is passed without application of mind by the Ld. PCIT. X. That the Ld. PCIT erred in holding that the assessment "is erroneous in so far as it was prejudicial to the interest of revenue". XI. That the Appellant craves leave to add, alter, amend or drop any of the above grounds at or before the hearing." 3. Brief facts of the case are that, the Assessee filed return for Assessment Year 2014-15 declaring total income of Rs. 2,59,030/- by claiming exempt Long Term Capital Gain of Rs. 96,44,515/- resulting from trade in script of M/s Trinity Tradelink Ltd. of total value of Rs. 97,68,000/-. The case of the Assessee was reopened by issuing notice u/s 148 of the Income Tax Act, 1961 ('Act' fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here was no order of the SEBI, therefore, the Ld. PCIT committed error in relying on the order of the SEBI which is even otherwise has not recorded any adverse findings against M/s Trinity Tradelink Ltd. Further submitted that the Ld. PCIT failed to consider that even the reasons for reopening were not due to any report of SEBI. Further submitted that the issue of Long Term Capital Gain has been examined by the A.O. by collecting the data and documents and all relevant materials and after due diligence, the A.O. completed the assessment u/s 143(3) r.w. Section 147 r.w. Section 144 of the Act. The Ld. Counsel for the Assessee relying on various judicial pronouncements sought for allowing the Appeal. 6. Per contra, the Ld. Departmental Repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quite likely gains booked by the assessee of Rs. 97,68,000 is not genuine. Further it was stated that this is based on the information received in this office, as well as independent enquiries to corroborate the same." 8. The reason for reopening are reproduced as under:- "The assessee had been involved in transactions in the penny stock scrip Sharp Trad F (name changed to Trinity Tradelink Ltd., scrip code 512417), while being involved in trades resulting in a trade value/sale of Rs. 97,68,000/-. It is pertinent to note that the issue of penny stocks have been examined in considerable detail by the Income Tax Department, where it has been found that such scrips are used by beneficiaries to book non-genuine long-term capital gains/capit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d all the relevant documents and after verification of the documents and due diligence. The Ld. A.O. fully satisfied about the genuineness of the transaction and accepted the exemption of LTCG as per Section 10(38) of the Act, therefore, in our considered opinion, the Ld. PCIT committed error in invoking provision of Section 263. 11. Apart from the same, the Ld. PCIT has observed that the said M/s Trinity Tradelink Ltd. has accepted before the SEBI that it is a shell Company. As per the ld. Assessee's Representative, the said finding of the PCIT is contrary to the order and the investigation conducted by SEBI and the same was not disturbed by the Hon'ble SAT. It is found that as on the date of issuing notice u/s 148 of the Act i.e. on ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
