Held that the Assessing Officer disbelieved the explanation merely on the basis of reports from Investigation Wing and Securities and Exchange Board of India. Neither an independent enquiry is carried by the Assessing Officer nor any incriminating material is found against the assessee. Disallowance of loss is deleted. PCIT v. Swati Bajaj (2022) 446 ITR 56 (Cal)(HC) is distinguished. As there is no exempt income no disallowance can be made u/s 14A of the Act. (AY. 2014-15)
Samrat Finvestors P. Ltd. v. ITO (2024)116 ITR 650 (Kol)(Trib)
S. 68 : Cash credits-Capital gains-Loss on sale of shares-Price rigging-Reports from Investigation Wing and Securities and Exchange Board of India-No independent enquiry-No incriminating material-Disallowance of loss is deleted-No exempt income-No disallowance can be made. [S. 10(38), 14A,, 45, 133(6), R.8D]