9911796707
TMI Blog2017 (4) TMI 1150X X X X Extracts X X X X X X X X Extracts X X X X ..... of law. (i)"Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal, has erred in law in upholding the order of the CIT(A), deleting the addition of Rs. 2,78,26,685/-, made by the AO on account of sham share transactions, ignoring an important aspect that the transaction of shares showing their purchase price at Rs. 11,00,000/- and sale consideration at Rs. 2,91,32,850/- within a period of less than two years/purchase of shares made in cash not cheque that too before shares got dematerialized/worth of the company at the time of purchase/sale of shares not proved? All suggest nongenuineness of the said transaction. (ii) Whether the Hon'ble ITAT has erred in ignoring an important aspect that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount of Rs. 2,78,26,685/- shown as long term capital gain on share transaction, was added to the income of the assessee. Aggrieved, by the assessment order dated 17.08.2012, the assessee filed appeal before the Commissioner of Income Tax (Appeals), Ludhiana [CIT(A)] . Vide order dated 30.12.2013, Annexure A-II, the CIT(A) deleted the addition of Rs. 2,78,26,685/- holding that department failed to prove that the sale of shares was sham transaction. The appeal was thus, partly allowed. Not satisfied with the order passed by the CIT(A), the revenue filed appeal before the Tribunal. Vide order dated 20.07.2016, Annexure A-III, the Tribunal upheld the order passed by the CIT(A) and dismissed the appeal of the revenue. Hence, the instant appeal b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terialized and were, credited in the assessee's account maintained with depository participant i.e. HDFC on 16.10.2006. Further, dividend amounting to Rs. 1,50,000/- has been declared and received with respect to aforementioned holding of shares on 23.10.2007 and the said dividend had been disclosed by the assessee in the return of income and claimed exempt accordingly. It is also to be noted that the said dividend had been accepted as exempt by the Assessing Officer for the year under consideration. The only logical conclusion that can be made from the sequential perusal of the above detailed facts is that the impugned shares were actually purchased by the assessee on given dates as these stand reflected in D'MAT account maintained with HD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eyond the stage of suspicion. It is further seen that the shares had been sold for an amount of Rs. 2,91,32,850/- and has been debited to assessee's D'MAT account maintained with D/P, HDFC. It is also seen that STT has been paid on the sale of shares and said shares had been sold through National Stock Exchange. It is also seen that the Assessing Officer while working out the addition has allowed indexation on the cost of purchase of shares till the date of sale and has in fact worked out the capital gain only to make the impugned addition. I am of the view that there is no evidence on record, gathering during the course of search proceedings or during the course of post search investigation or assessment proceedings to hold the view that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n his order that in the remand report Assessing Officer was not able to contradict any of the facts regarding purchase of shares and regarding sale of shares. It is further observed that assessee had paid STT on the sale of such shares and this fact has been noted by learned CIT(A) in his order. Further, we find that while making out the addition on account of capital gain the Assessing Officer himself gave credit to assessee for indexed cost of acquisition to the extent of Rs. 11,67,821/- taking the purchase price at Rs. 11,00,000/-. Further, we find that assessee had sold shares through MTL shaes and Stock Brokers Limited as is noted by Assessing Officer in reply to question No.24 which is a SEBI registered Stock Broker. Furthermore the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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