TMI Blog2011 (7) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... 149/- made by the AO as income from other sources against Long Term Capital Gains shown by the assessee on sale of shares of M/s. Talent Infoway Ltd. 3. On the facts and in the circumstances of the case, the ld. CIT(A) ought to have appreciated the fact that the assessee has shown purchases and sales of shares and as declared income as Long Term Capital Gains by way of merely accommodation entries considering the modus operandi used by the assessee in connivance with the brotjer and that it was a colourable device in order to defraud the revenue and that the alleged transactions were actually sham transaction. 4. For these reasons and other reasons may be urged at the time of hearing , it is requested that the order of the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee. The AO also referred to the fact that in respect of the sale of shares of M/s. TIL by one Shri Ravindra Toshniwal for A.Y 2005-06 similar facts prevailed and in that case it transpired that Shri Mukesh Chokshi was a caretaker and contact person of M/s. TIL. The AO also addressed letters to M/s. TIL about the transaction of sale by the assessee. M/s. TIL replied to the AO that they were not aware of the transaction because it was off-market transaction from one D-Mat account to another D-Mat account about which they cannot have any knowledge. Based on the above facts and circumstances the AO was of the view that the transaction of sale of shares was a bogus and a sham transaction and, therefore, the LTCG on sale of shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entries of his clients against receipt and his commission. It is on record that Shri Mukesh Chokshi, has given accommodation entries of M/s. Talent Infoway Ltd. The A.O, therefore, concluded that Shri Mukesh Chokshi was giving only accommodation entries to enable persons to bring unaccounted money in their books in the form of LTCG. The AO accordingly treated the LTCG declared by the assessee as income from other sources. 4. On appeal by the assessee the CIT(A) found that the AO based his findings in the order of assessment on the basis of finding on the case of Shri Ravindra Toshniwal. He found that in the case of Shri Ravindra Toshniwal, the CIT(A) had held that the addition made by the AO was unsustainable. The CIT(A) has held t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... action 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 point (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 Rajnidevi 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 transferred and the names of the shareh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
