Case Law Details
Smt. Rachna Agarwal Vs ITO (ITAT Kolkata)
Facts- The sole/main grievance of the assessee is against the action of the Ld. CIT(A) confirming the order of the AO making the addition on account of Long Term Capital Gains (LTCG) of Rs.77,78,476/- which the assessee derived from sale of scrip known as M/s. GCM Securities Ltd.
The AO further noted that during the relevant assessment year the assessee had traded the scrip by the name of GCM Securities Ltd. which according to him was a ‘penny stock’, which has been used for generating bogus LTCG. According to AO, the unaccounted cash of beneficiaries (like assessee) is utilized to purchase shares at a low price and thereafter, in collusion the price of the scrips are artificially inflated and sold it is shown as LTCG and according to the AO, the scrip GCM Securities Ltd. is also a penny stock and, therefore, the AO was pleased to add u/s. 68 of the Act Rs.77,78,476/- as unexplained cash credit. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A) who confirmed it. Aggrieved, the assessee is in appeal before us.
Conclusion- In the present case we find that the entire addition is on the basis of some investigation report, the relevant portions of which is also not cited in the show cause or the assessment order, there is nothing against the assessee and no inquiry whatsoever has been done by the AO or the Ld CIT (A). In such circumstances the assessee having discharged her onus and nothing adverse being found against her, the addition cannot be sustained.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
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