TMI Blog2010 (2) TMI 1157X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction is not a unlawful activity and there is no relevance in seeking details of share transaction from stock exchange when the sale was not on stock exchange and relying upon it for making addition. Sale proceeds have been paid to the assessee through the funds provided by the assessee - We find that the assessee has filed relevant documentary evidence before the AO but the AO has failed to consider the same. The CIT[A] in his order has considered the said evidence and has come to the conclusion that the share transactions are genuine. AO could have verified from the Registrar of companies as to whether the shares have been transferred and the names of the shareholders in whose names shares have been transferred - Therefore, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Securities Pvt. Ltd., both of whom are located at the same address. In reply to the notices sent u/s.133[6] of the Act, the share brokers vide letter dated 16-10-07 stated that the shares are sold by them on behalf of Shri Ravindrakumar Toshniwal through stock Exchange in the market and it is difficult to submit the details of the buyer as they are not available with them. The relevant daily quotations of Ahmedabad Stock Exchange were enclosed. To verify the genuineness of the said transaction, AO issued notice u/s.133(6) to the Ahmedabad Stock Exchange Ltd. (ASEL) and in response to the same, (ASEL) vide letter dated 16-11-07 replied that there is no transaction reported at ASEL in the scrip M/s Buniyad Chemical Ltd. and M/s Talent Info ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Shri Ram P. Mankad. He, therefore, came to the conclusion that Shri Mukesh M. Chokshi in reality was a person operating bogus/sheil companies and the contact telephone numbers of M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. is that of M/s Alliance Intermediaries Network Pvt. Ltd. and M/s Mahasagar Securities Pvt. Ltd., and it is also the address of Shri Mukesh Chokshi and M/s Buniyad Chemical Ltd. AO also summoned the assessee u/s.131 of the Act and recorded his statement on oath on 30-11-07 in which the assessee stated that the transactions of sale were concluded on his instructions by the brokers. Thereafter, AO came to the conclusion that the entire transactions i.e. the purchase and sale of shares are part of accommodation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce against him on the basis of material relied upon by him from survey action taken u/s.133 upon the premises of the director Shri Mukesh Chokshi without providing an opportunity to the assessee to rebut the same. It was submitted that the AO cannot rely upon the statement of a director in part and reject the other part. 8. The CIT[A] after considering the documentary evidence on record filed by the assessee and after taking into consideration the decision of the Tribunal in the case of Mukesh R. Marolia [cited supra], came to the conclusion that the sale transactions of the assessee cannot be held to be bogus as held by the AO. He accordingly deleted the addition made by the AO. Aggrieved, by the relief given by the CIT[A], the revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it has been held that off market transaction is not a unlawful activity and there is no relevance in seeking details of share transaction from stock exchange when the sale was not on stock exchange and relying upon it for making addition. 13. As regards points (b) (c) above, we find that the assessee has filed relevant documentary evidence before the AO but the AO has failed to consider the same. The CIT[A] in his order has considered the said evidence and has come to the conclusion that the share transactions are genuine. However, as held by the Tribunal in the case of Rajinidevi A. Chowdhary [cited supra], which is on similar set of facts, the AO could have verified from the Registrar of companies as to whether the shares have been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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