Shamim Imtiaz Hingora Vs ITO (ITAT Pune)
It is an undisputed fact that the shares involved are Penny Stocks and the Assessing Officer did not find any mistake in the documentation furnished by the assessee. The Assessing Officer alleges that the documentation is self-serving.
After considering both sides ITAT held that there is need for finding of fact on (i) the nature of the shares transactions; (ii) make-believe nature of paper work; (iii) Camouflage the bogus nature; and, (iv) the relevance of human probabilities etc. Thus, ld. AR mentioned that all the judgements are distinguishable on facts. The CIT(A) needs to compare the facts of all these cases under consideration and others, if any. Hence, the issue is required to be remanded to the file of the CIT(A). With these directions, the CIT(A) is directed to pass a speaking order after granting a reasonable opportunity of being heard to the assessees. Accordingly, the grounds in all the appeals of the respective assessees are allowed for statistical purposes.
FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-
There are four appeals under consideration. All these appeals relate to the same family and they are filed with common grounds of appeal for the assessment year 2015-16. Since the facts and issues involved in these four appeals are common, therefore, all these four appeals were heard together and are disposed of by this composite order.
2. The solitary issue raised by the assessee in all the four appeals relates to the addition on account of Penny Stocks involving the shares of “Mishika Finance”. The assessee purchased the 300 shares from M/s Pyramid Trading & Finance Ltd. presently known as Mishka Finance & Trading Limited. The aforesaid shares have been transferred by M/s. Tohee Trading & Agencies Pvt. Ltd.. As per the SEBI’s website, the said company, M/s. Tohee Trading & Agencies Pvt. Ltd. was one of the delisted company since long. The share value went up substantially and it is to the benefit of the assessee. Assessee sold these shares and the gains were claimed exempt. Considering the Penny Stocks and off-market nature of the transactions, the Assessing Officer made addition at Rs.10,09,687/- in the case of Shamim Imtiaz Hingora and the contents of para 22 of the assessment order are relevant in this regard. Similarly, the additions made by the Assessing Officer in other three cases are as under :-
