TaxTMI 
TaxTMI 
2014 (11) TMI 1024
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....the Income Tax Act. 2. The facts of the case as brought out from the order of the Ld. CIT(A) are that a search & seizure action u/s. 132 was undertaken in the case of M/s. Mahasagar Securities P. Ltd. and its group companies including M/s. Gold Star Finvest P. Ltd. on 25.11.2009. A statement of Shri Mukesh Chokshi, Director of M/s. Mahasagar Securities P. Ltd. was recorded wherein Mukesh Chokshi had explained in detail the modus of operation of the accommodation entries racket being run by him by floating some 34 companies and admitted to be in business of providing the bogus accommodation entries. Further enquires by the Investigation Wing also confirmed that many of the sub-broking companies floated by Shri Mukesh Chokshi actually did no....
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.... Ltd. who was registered member of stock exchange and having SEBI registration number and that the sale proceeds were received through cheques only. It had also been contended that the shares were of listed companies and traded at the rates appearing in news papers and the assessee had no doubts on the genuineness as the shares were received by assessee in physical form and even the sale proceeds were received by cheques. It was therefore claimed by the assessee that the transactions are genuine transactions only. It is further contended that u/s 14(2)SCRA, if the purchaser and seller does not have knowledge about the rules and regulations of share trading transactions, his interest are protected and should not be found fault with any act o....
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....decided on 31.10.2014" 5. We find that the facts of the above stated cases were all most identical to that of the assessee. In the case of "Kataria Ketan Ishwarlal Vs. ITO" (supra), the transactions were carried out through the same broker i.e. M/s Gold Star Finvest Pvt. Ltd. The Tribunal allowed the appeal of the assessee observing as under: "6.1 We have considered the rival submissions made by both the sides, perused the orders of the Assessing Officer and the CIT(A) and the Paper Book filed on behalf of the assessee. From the copy of the share certificate, Demat account, share transfer form filed in the Paper Book, we find the assessee has purchased 9500 shares of Kushal Software Ltd. from M/s. Handful Investors Pvt. Ltd. We find the A....
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....al filed by the assessee is partly allowed." 6. Further in the case of "ACIT Vs. Shri Ravindrakumar Toshniwal" (supra), the share profit was earned from the sale of shares of "M/s Buniyad Chemicals Ltd" i.e. the same entity as in the case of the assessee. The Tribunal has allowed the claim of the assessee observing as under: ""11. Having heard both the parties and having considered their rival contentions, we find that the AO has treated the said transactions as bogus transactions on the ground thata) The sale transactions were not on the floor of the ASEL but were off market transactions; b) The address of the M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. was the same and the contact person for M/s Buniyad Chemical Ltd. on the f....