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2015 (9) TMI 1420 - ITAT MUMBAI

2015 (9) TMI 1420 - ITAT MUMBAI - TMI - Income from unexplained sources u/s. 68 - Held that:- AO had made addition to the income of the assessee u/s.68 of the Act on the basis of the report of the investigation wing of the department,that the officers of the wing had carried out a search and seizure action in the case of Mukesh Choksi group concerns who were engaged in the business of providing accommodation entries,that the was informed that the assessee was beneficiary of the entries provided .....

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ceiving 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 point for further investigation but was not a reliable evidence .....

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19.8.2011of CIT(A)-29, Mumbai, the Assessing Officer(AO), has raised following Grounds of Appeal: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in allowing the relief to beneficiary of dubious transaction i.e. assessee's on the base fact that ITAT, Mumbai has quantified income of M/s. Goldstar Finvest Pvt. Ltd. for A.Y. 2002- 03 at 0.15% of various dubious transaction as an entry provider was examined in the case of M/s. Goldstar (Pvt.) Ltd. 2. &qu .....

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ed 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. .....

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vestigation wing reported that the transactions entered into by the beneficiaries with the group concerns was bogus and the same representing the undisclosed income of the beneficiaries for the AY.2003-04. The assessee was reported to be one of the beneficiaries appearing in the list prepared by the investigation wing.It was found by the AO that assessee had not filed the return of income though she had been allotted PAN on 19.12.2002. A letter was issued to the assessee to verify whether she ha .....

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o the assessee about the transactions entered into with Mahasagar Securities group.During the assessment proceedings the Assessing Officer made an addition 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 .....

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L had admitted in the appeal proceedings,for the year 2002-03, before the Tribunal of providing entries,that the Tribunal had accepted the company to be an entry provider and had order for computing its income at 0.15% of total entries, that the shares sold by GFPL had not been immediately transferred to assessee s demat account, that they had come to assessee s demat account only a few days before the sale, that Buniyad Chemicals was controlled by Mukesh Choksi Group, that the assessee had purc .....

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e scrips to the total income of the assessee.Finally,the AO taxed the sale proceeds of all the above referred four scrips,as income from unexplained sources u/s. 68 of the Act. 4.Aggrieved 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 31.6.200 .....

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to prove that delivery of shares was not taken on 30th June, 2001,that the Tribunal had quantified income of GFPL for AY 2002-03 @ 0.15% of various dubious transactions, that the Tribunal had taken transfer/clearing entries of three bank accounts of GFPL namely Bank of Baroda account, Citi bank Account and Co-operative Bank of Ahmedabad Account, that the transactions undertaken by the assessee related to Kurur vyasya Bank Ltd., Fort Mumbai, that there was enough evidence to conclude that the sha .....

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the assessee had purchased 5000 and 7500 shares of Prime Capital and Mantra Online respectively on 9.8.2001 and 28.6.2001 respectively that those shares were sold 30.9.2001,that the transactions were through stock exchange,that the transactions were also not through GFPL, that no further adverse evidence had been placed on record by the AO,that the shares had been demated and sold, that the sale proceeds were received by cheques,that the sale proceeds could not be taxed as income from other sou .....

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