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Chirag Tejpraksh Dangi v.ITO (Mum)( Trib)www.itatonline .org

S. 68 : Cash credits – Long term capital gains – Penny stock –Information from Investigation wing from Kolkata- Estimation of commission – Not subjected to any enquiry by SEBI -Statement of the assessee – Sold through DMAT account – Addition as cash credits and estimation of commission is deleted . [ S. 10(38), 45 , 69C, 131 ]

The aassessee has sold the shares of , Radford Global Ltd. (Earlier known as PS Global Ltd,  Surbhi Chemicals & Investment Ltd and Pyramid Trading & Finance Ltd. (Now known as Mishka Finance & Trading Ltd)  and shown as exempt under section  10(38) of the Act. On the basis of the report of the Investigation Wing of the Kolkata  the Assessing officer treated the sale consideration as cash credits and also made estimated disallowance of alleged commission under section 69C of the Act . On appeal the CIT(A) affirmed the addition. On appeal the Tribunal deleted the addition on the ground that  the assessee was not subjected to any enquiry by SEBI, the shares were sold through DMAT account , payments were received by account payee cheques , in response to summons under section 131 the assessee appeared before the Assessing Officer and produced the all relevant documents .  The Tribunal following the decision of the jurisdictional High Court , the addition is deleted . Referred ,  PCIT v. Ziauddin A Siddique (ITA No. 2012 of 2017 dated 4th March, 2022 (Bom)(HC) ,  PCIT v. Renu Aggarwal ( Smt.)   (2023)456 ITR 249) (SC)  , PCIT v. Indravadan Jain HUF (ITA No. 454 of 2018)(Bom) ((HC)  ,  CIT v Shyam R. Pawar (2015)54 taxmann.com 108/ 229 Taxman  256 )(Bom),(HC)   CIT v. Jamnadevi Agrawal  (Smt.) (2010) 328 ITR 656/   (. 2012  ) 20 taxmann.com 529 (Bom ) (HC) PCIT v. Krishna Devi  (Smt.)   (2021)126 Taxmann.com 80 / 279 Taxman 148 / 431 ITR 361 (Delhi)(HC) .(ITA No.3256 /Mum/2022 dt.20-2 -2024 )(AY. 2014 -15 )

The aassessee has sold the shares of , Radford Global Ltd. (Earlier known as PS Global Ltd,  Surbhi Chemicals & Investment Ltd and Pyramid Trading & Finance Ltd. (Now known as Mishka Finance & Trading Ltd)  and shown as exempt under section  10(38) of the Act. On the basis of the report of the Investigation Wing of the Kolkata  the Assessing officer treated the sale consideration as cash credits and also made estimated disallowance of alleged commission under section 69C of the Act . On appeal the CIT(A) affirmed the addition. On appeal the Tribunal deleted the addition on the ground that  the assessee was not subjected to any enquiry by SEBI, the shares were sold through DMAT account , payments were received by account payee cheques , in response to summons under section 131 the assessee appeared before the Assessing Officer and produced the all relevant documents .  The Tribunal following the decision of the jurisdictional High Court , the addition is deleted . Referred ,  PCIT v. Ziauddin A Siddique (ITA No. 2012 of 2017 dated 4th March, 2022 (Bom)(HC) ,  PCIT v. Renu Aggarwal ( Smt.)   (2023)456 ITR 249) (SC)  , PCIT v. Indravadan Jain HUF (ITA No. 454 of 2018)(Bom) ((HC)  ,  CIT v Shyam R. Pawar (2015)54 taxmann.com 108/ 229 Taxman  256 )(Bom),(HC)   CIT v. Jamnadevi Agrawal  (Smt.) (2010) 328 ITR 656/   (. 2012  ) 20 taxmann.com 529 (Bom ) (HC) PCIT v. Krishna Devi  (Smt.)   (2021)126 Taxmann.com 80 / 279 Taxman 148 / 431 ITR 361 (Delhi)(HC) .(ITA No.3256 /Mum/2022 dt.20-2 -2024 )(AY. 2014 -15 )