TMI Blog2015 (9) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... e FAA had given categorical finding of fact that the assessee was holding the shares for more than one year,that folio no and copies of certificates were made available to the AO,that the stamp of the company proved that shares were actually transferred in the name of the assessee,that sale of the shares and receiving the sale proceeds through banking channels is not in doubt,that Mukesh Choksi had not alleged that the transactions in question were tainted,that the assessee was not allowed cross examination of Mukesh Choksi with regard to the transactions entered in to by her.Considering the above facts, we are of the opinion that the FAA was justified in reversing the order of the AO.The information received by the AO was a good starting p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in considering the deduction u/s. 54F as allowable. 5. The appellant prays that the order the CIT(A) on the above grounds be reversed and that of the Assessing Officer be restored. 6. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary. Brief facts: 2.An action u/s. 132 of the Act was carried out in the case of Mahasagar Securities Pvt. Ltd. on 25.11.2009 based on the information that the group companies, including M/s. Goldstar Finvest Pvt. Ltd. (GFPL)were engaged in providing bogus bills of transactions in shares and securities, that the directors of the companies were engaged in fraudulent bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of ₹ 27,33,262/-u/s. 68 of the Act relating to sale of shares in following four scrips: Name of scrip Sale consideration(Rs.) Buniyad chemicals Ltd. 6.28 lacs NE Electronics Ltd. 7.79 lacs Prime Capital markets Ltd. 5.38 lacs Manta online 7.86 lacs The assessee claimed that she had earned LTCG as she was holding the shares for more than one year.The AO issued a show cause notice to her stating that the so called sale of scrips by the her was not genuine.The AO held that officers of the investigation wing had examined th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eved by the order of the AO the assessee preferred an appeal before the First Appellate Authority (FAA) and made elaborate submissions before him. After considering the submissions of the assessee and the assessment order the FAA held that the assessee had purchased 9000 shares of Buniyad chemicals Ltd. on 31.6.2001 and sold them on 3.10.2002, at the folio nos. and the copies of share certificates were submitted ,that the seal of the company proved the transfer of the shares,that there was no specific statement by Mukesh Choksi that the transaction in question was forged or cooked up,that the payment to the broker had been made by book adjustments from STCG earned in AY 2002-03, that the assessee had filed her return and had claimed that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the sale proceeds could not be taxed as income from other sources or as unexplained credit u/s. 68 of the Act 5.Before us,the Departmental Representative(DR)supported the order of the AO and stated that the investigation wing of the department had found that the assessee had entered into transactions with the Mukesh Choksi group who was providing accommodation entries.Authorised Representative (AR)argued that the assessee had proved purchase and sale of shares with documentary evidence,that the shares were held for a period of more than one year,that two of the scrips were sold stock exchange.He relied upon the case of 6.We have heard the rival submissions and perused the material on record.We find that the AO had made addition t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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