TMI Blog2016 (11) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... Wipro Limited on 10-04-2003 in making investment in the shares of Buniyad Chemicals Limited and Talent Infoways Limited and if this contention of the assessee is found to be correct then the addition of ₹ 1,00,518/- as made by the AO and confirmed/sustained by learned CIT(A) shall stand deleted. - Decided in favour of assessee for statistical purpose. - I .T.A. No.482/Mum/2014 - - - Dated:- 9-9-2016 - SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER For The Assessee : Ms. Minita Jain For The Revenue : Shri Naveen Gupta ORDER PER RAMIT KOCHAR, Accountant Member This appeal, filed by the assessee , being ITA No. 482/Mum/2014, is directed against the appellate order dated 8th October, 2013 passed by learned Commissioner of Income Tax (Appeals)- 23 Mumbai (hereinafter called the CIT(A) ), for the assessment year 2004-05, the appellate proceedings before the learned CIT(A) arising from the assessment order dated 19th October, 2011 passed by the learned Assessing Officer (hereinafter called the AO ) u/s 143(3) r.w.s. 147 of the Income Tax Act,1961 (Hereinafter called the Act ). 2. The grounds of appeal raised by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. as an investment in the Balance Sheet and hence there was no escapement of income. The A.O. rejected the contention of the assessee and held that the case was reopened based upon the information received after a search operation u/s.132 of the Act was conducted upon the M/s Mahasagar Securities P. Ltd and it was observed that group concerns of Mahasagar Securities Private Limited through their Directors namely Sh. Mukesh Chokshi and Sh. Jayesh K. Sampat were indulging in bogus billing activities for providing bogus speculation profit and loss, short term and long term capital gain and loss, share application money, commodities profit loss on commodity trading etc. for many years . The DDIT had conveyed this information along with the details of the beneficiaries and it has been stated that the assessee was one of the beneficiaries of the transactions for purchase and sale of shares of Mastek Limited, Wipro Limited. Buniyad Chemicals and Talent Infoways Limited made through Gold Star Finvest P. Ltd. in financial year 2003-04 for a total consideration of ₹ 4,02,652/- and these transactions were entirely bogus and not undertaken through the stock exchange and the income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t she has shown the shares of Buniyad Chemicals and Talent Infoways as an investment in Balance Sheet was also rejected by the AO on the same grounds as was done to reject the sale and purchase of shares of Wipro Limited and Mastek Limited. The bills for purchase of shares of Buniyad Chemicals Limited and Talent Infoways Limited were rejected and a sum of ₹ 1,00,518/- which was amount reflected in the bills issued by Mahasagar Securities Private Limited was added to the income of the assessee from other sources u/s. 68 of the Act as unexplained cash credit , by the AO vide assessment order dated 19-10-2011 passed u/s 143(3) read with Section 147 of the Act. 4. Aggrieved by the assessment order dated 19-10-2011 passed by the A.O. u/s. 143(3) read with Section 147 of the Act, the assessee carried the matter in appeal before the ld. CIT(A). 5. The ld. CIT (A) after considering the submissions of the assessee held that on perusal of bills issued by Mahasagar Securities Private Ltd. reveals that the alleged transaction for purchase and sale of shares of Mastek Limited and Wipro Limited were not carried on through the stock exchange nor does it carry the details of the settle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) erred in confirming the addition to the tune of investment in shares of Buniyad Chemicals Limited and Talent Infoways Limited on the grounds that the source of investment was not explained by the assessee, while the fact is that source of investment is speculation gain of ₹ 1,00,044/- from sale and purchase of shares of Mastek Limited and Wipro Limited and the said speculation profit is already offered for taxation by the assessee. The learned CIT(A) deleted the addition on ground of transaction connected with purchase and sale of shares of Mastek Limited and Wipro Limited as was made by the AO. 8. The ld. D.R. relied on the orders of the authorities below. 9. We have considered the rival contentions and also perused the material available on record. It is the say of the ld. Counsel for the assessee that the assessee has undertaken purchase and sale of shares of Mastek Limited and Wipro Limited on the same day on 10-04-2003, and from which the assessee has earned speculation gains of ₹ 1,00,044/- which has been offered for taxation by the assessee in the return of income filed with the Revenue which is an undisputed position between the rival parties. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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