9911796707
TMI Blog2016 (6) TMI 1209X X X X Extracts X X X X X X X X Extracts X X X X ..... A.880/Bang/2016 pertains to A. Y. 2010-11. 02. Facts giving rise to these appeals lie within the same compass and hence these appeals are disposed off through a common order. 03. Assessees herein who are general merchants and commission agents had filed their return for impugned assessment years and were assessed u/s.143(3) of the Income-tax Act, 1961 ('the Act' in short). Reopening was done in each of this case by issue of notice u/s.148 of the Act. Thereupon assessees requested the AO to treat the returns originally filed as those filed in compliance to such notice. Assessees maintained books under mercantile system and the accounts were audited u/s.44AB of the Act. All the assessees had claimed exemption long term capital gains arising ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rsons along with their PA numbers were mentioned in the statement given by Shri. Chokshi, and such names included that of the assessees. This information was provided by CIT, Gulbarga through a letter dt.21.03.2013. Based on the said statement AO required the assessee to explain why exemption for long term capital gains claimed by the assessees should be given. As per the AO, the transactions giving rise to the claim of capital gains were bogus. AO also required the assessees to explain why shares were purchased at much lower price than the listed price as on the date of purchase. Reply of the assessees was that the shares were purchased from recognised share-brokers and through off-market transactions. Assessees also produced demat account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to him, SEBI had banned all off-market bogus deals including cross deals vide circular dt.14.09.1999. Further as per the CIT (A) confirmation from the concerned stock-brokers were not produced by the assessees. He thus confirmed the orders of AO. 07. Now before us, Ld. AR strongly assailing the orders of authorities below submitted that Shri. Mukesh Chokshi was in no way related to the assessees. As per the Ld. AR assessees could not be put on peril for statements given by third parties, who were alien to the deals. Shares were purchased from stock-brokers. Purchases were made off-line, but were supported by stock-broker purchase bills which were duly produced before the lower authorities. Payments were made through account payee chequ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arty who was totally unrelated to the assessees could not be taken as evidence for disbelieving the evidence furnished by the assessees. In a similar situation, Hon'ble Rajasthan High Court in the case of Kan Singh Rathore (supra) had held as under : This appeal is preferred to question correctness of the order dated 3.4.2014 passed by learned Income Tax Appellate Tribunal, Jodhpur Bench, Jodhpur affirming order dated 25.2.2013 passed by the Commissioner of Income Tax (Appeals), Udaipur. The facts necessary to be noticed for adjudication of this appeal are that an assessment order as per provisions of Sub- Section (3) of Section 143 of the Income Tax Act, 1961 was passed by the Deputy Commissioner of Income Tax, Chittorgarh on 30.12.201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned. It is not in dispute that the Assessing Officer treated the transaction bogus solely by relying upon the statement of Mr. Mukesh Choksi, who remained unconfronted, though, was called for as per Section 133(6) of the Income Tax Act, 1961. In response, it was communicated to the Assessing Officer that no adequate assistance could be given as the entire record of Mahasagar Securities was earlier impounded and was in custody of Income Tax Department. In these circumstances, Shri Mukesh Choksi was not confronted by the assessee. In absence of it, the statement of Shri Mukesh Choksi could have not been used against the assessee. The other question with regard to business loss of Rs. 4,24,557/- is also a purely question of fact and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
