Sagar Jhaveri Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that addition on account of disallowance of loss in trading of shares set aside as active involvement of assessee in price manipulation not demonstrated. Accordingly, appeal allowed on merits.
Facts- The present appeal is preferred by the assessee mainly contesting addition on account of disallowance of loss in trading of shares of Radhe Developers India Ltd. Assessee contested that CIT(A) has erred in law and on facts in confirming the addition of Rs. 2,94,753/-on account of disallowance of loss in trading of shares of Radhe Developers India Ltd. merely on surmises and conjectures based on various allegations/observations which are not only contrary to facts of the case but are highly irrelevant as well as HYPOTHETICAL based on technical study and analysis which is further based on surmises, presumptions and assumptions.
Conclusion- The Assessing Officer has not co-related with the trading as well as the price fluctuation of M/s. Radhe Developers Ltd. as any connection with the assessee’s syncronised manner of trading and the link which establishes the assessee’s involvement in the fluctuation of the price has not been categorically mentioned in the assessment order. The CIT(A) has also not given any independent finding after verifying that whether there is an actual syncronised trading between the assessee and that of company scrip i.e. M/s. Radhe Developers Ltd. which has a variation/fluctuation in its pricing at the time of purchase as well as at the time of sale.
