TMI Blog2017 (6) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... gard to the remand report and the decision of the Tribunal in the case of assessee’s daughter. Appeal of the assessee is allowed for statistical purposes. - ITA No.661/Mum/2014 - - - Dated:- 5-6-2017 - SHRI R.C.SHARMA, AM AND SHRI RAVISH SOOD, JM For The Assessee : Shri Hiro Rai For The Revenue : Shri Saurabh Deshpande ORDER PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)-32, Mumbai dated 28/11/2013 for the A.Y.2005-06 in the matter of order passed u/s.144 r.w.s.147 of the IT Act wherein assessee is aggrieved for addition of ₹ 40,43,175/- and ₹ 2,02,159/- as unexplained credits u/s.69C of the IT Act. 2. At the outset, learned AR placed on record the order of the Co-ordinate Bench in the case of daughter of the assessee and contended that under similar facts and circumstances, additions so made was deleted by the Tribunal vide its order dated 30/09/2016. 3. We have heard the rival contentions and found from record that information was received by the AO that assessee being one of the beneficiaries of Mahasagar Securities Ltd. (now Alag Securities Pvt. Ltd.) group cases of share seam, from DDIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion profit/loss, STCG/LTCG, commodity trading (through MCX) and having continuing this business for many years. In the said information supplied by the DDIT(Inv.) to the AO, the name of the assessee as one of the beneficiaries appeared, who had laundered their money by paying cash to the said group. 5. The AO observed that the assessee was one of the beneficiaries who had launched his money by way of bogus accommodation bills of transactions of shares of Asian Paints, Kotak Mahindra Bank, Alfa Level India Ltd., Ashok Layland Ltd., Prraneta Ind., Bharat Forge Go. Ltd., Bharat Heavy Ele. Ltd., Abb Ltd., Aventis Pharma Bajaj Auto Ltd., Inter Link, Micro Techn. Through M/s. Alliance Intermediateries Network Pvt. Ltd., amounting to ₹ 1,14,93,977/-. The information revealed that the companies floated by Shri Mukesh Chokshi were engaged in the business of issuing bogus bills for providing LTCG/Loss, Speculation profit or loss. Accordingly for the reasons recorded u/s. 147 of the Act, notice u/s. 148 dated 28.3.2011 was issued and duly served on the assessee. 6. The AO observed that during the year under consideration, the appellant had shown gain on share trading by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orked out to be ₹ 1,14,93,377/-. In the remand AO also observed that there exist no payment between assessee and M/s. Alliance Intermediateries Network Pvt. Ltd as the modus operendi is to show bogus day trading which is in turn used to show bogus purchase of shares. 11. It was contented by learned AR that the source of fund was shown by the assessee out of profit from speculation transaction which was entered on the very same day with regard to purchases as well as sales. The profit arising out of speculation transaction was already offered by the assessee for tax purposes which amounts to ₹ 4,07,148/- for purchase of shares which was sold in the subsequent year and profit thereon was also declared in the next year and also assessed by the AO under Section 143(3) amounting to ₹ 70,27,062/-. Our attention was also invited to the computation of total income filed alongwith return of income for the Assessment Year 2006-2007 wherein under the head income from other sources assessee has offered income of ₹ 70,27,062/- Our attention was also invited to the assessment framed by the AO u/s. 153A read with Section143(3) of the I.T. Act dated 31/03/2015 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO or CIT(A) to say that assessee has made any actual payment on account of purchase of shares or received any cheque against the sales of shares made by it. The assessee has already disclosed profit / loss on these speculative transactions. Accordingly, there is no justification for the additions so made by the AO on account of purchase amount of shares u/s.69C. 15. In the result, appeal of the assessee is allowed. 7. We have considered rival contentions and carefully gone through the orders of the authorities below. We have also gone through the order of the Tribunal dated 30/09/2016 in case of assessee s daughter, Bela V Shah. We found that similar addition made in the hands of the daughter of the assessee was deleted by the Tribunal vide its order dated 30/09/2016, after observing that assessee has duly offered income arising out of the transaction in the immediately subsequent assessment year 2006-07 and the same has been accepted by the AO while passing order u/s.143A r.w.s. 143(3). The Tribunal have also observed that in the assessment so framed, AO has brought to tax ₹ 70,27,062/- under the head income from other sources . The Tribunal has also observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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