INCOME TAX OFFICER-27(3)(1), MUMBAI vs. SACHIN VELJI SHAH, MUMBAI

This is an appeal preferred by the revenue against the order of the Ld. Commissioner of Income Tax (Appeals)/NFAC, Delhi dated 06.04.2023 for the assessment year 2015-16. 2. The grounds of appeal of the revenue are as under: Ground: i) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the order of the AO passed u/s.143(3) of the Income-tax Act, 1961, without appreciating the fact that the AO has passed the order after detailed analysis of share market fundamentals and financials of the company, namely M/s. Mahavir Advanced Remedies Ltd.? Ground: ii) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the order of the AO passed u/s.143(3) of the Income-tax Act, 1961, without appreciating the fact that the AO had carried out investigation u/s.133(6) of the Act regarding the purchasers of the shares/exit providers sold by the assessee and had also recorded statement of the assessee? Ground: iii) Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the addition of Rs.3,85,77,491/- made by the A.O. under section 68 being sale proceeds of shares on the basis of report of Investigation Wing Kolkata that the scrip of Mahavir Advanced Remedies Ltd was suspicious penny stock and the price of this share was rigged artificially to provide bogus entries of long term capital gain to the beneficiaries and the assessee being one of the beneficiaries of the same? Ground :iv) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) was justified in deleting the order of the AO passed u/s. 143(3) of the Income-tax Act, 1961, without appreciating the fact that the SEBI has suspended the scrip of M/s. Mahavir Advanced Remedies Ltd. on 07.01.2015. Ground: v) Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to appreciate that the addition of Rs.19,28,875/- made by the A.O. under section 69C of the Act, being 5% of commission paid to broker for arranging capital gain to various parties without appreciating the fact that without looking into the fact noted by the CIT(A) that the assessee had to give commission to the brokers to rig and to provide the accommodation entry to share of M/s. Mahavir Advanced Remedies Ltd?