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2018 (2) TMI 1877 - ITAT MUMBAIAddition u/s 68 - bogus Income from share transactions - HELD THAT:- CIT (Appeals) has given a finding that dealing in shares by the assessee in the above script has to be taken as dealing in penny stock which was in the form of accommodation entries and hence the entire sale consideration of this scrip has to be treated as unexplained cash credit within the meaning of section 68. The facts of the case indicate that the assessee has claimed to have purchased share from Cable Corporation of India Ltd. through Mahasagar Securities Pvt. Ltd. and Alliance Intermediateries & Network Pvt. Ltd. These intermediateries are companies operated by Shri Mukesh Choksi and are involved in providing bogus entries. On enquiry, the AO has found that for the said company Cable Corporation of India Ltd., Link Intime India Pvt. Ltd. is the registered authority. The Assessing Officer asked for information u/s. 133(6) of the Act vide letter dated 25.2.2015 from Link Intime India Pvt. Ltd. regarding the genuineness of the transaction. The said Link Intime India Pvt. Ltd. vide letter dated 27.2.2015 stated that the assessee (shareholder) is not holding any shares in DEMAT account in the above mentioned company. In these factual backgrounds, the above transaction of the assessee has been held to be bogus accommodation transaction. The above factual scenario clearly indicates that the assessee has indulged in bogus transaction to show his undisclosed income in the garb of long term capital gain. The shares of unknown company in an off market deal has jumped manifold without any apparent reason. There is no economic and financial basis for the astronomical appreciation involved in the short span of time. See SANJAY BIMALCHAND JAIN L/H SHANTIDEVI BIMALCHAND JAIN VERSUS THE PR. COMMISSIONER OF INCOME TAX-I, NAGPUR & ANOTHER [2017 (5) TMI 983 - BOMBAY HIGH COURT] - Decided against assessee.
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