TMI Blog2016 (10) TMI 1125X X X X Extracts X X X X X X X X Extracts X X X X ..... not examined at all by the AO. We further notice that the assessee has filed return of income showing the purchases in the year relevant to AY 2003-04 and the sales in the return of income relating to AY 2004-05. We further notice that the assessee has sought for the copy of statement claimed to have been given by Shri Mukesh Choksi with regard to the transactions carried on by his group of companies. However, the same has not been provided to the assessee. According to the Ld A.R, the assessing officer has not shown that the transactions of the assessee have been claimed to be accommodation entries by Shri Mukesh Choksi. Accordingly it was submitted that the tax authorities should not have taken adverse view of the matter on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on from DDIT(Investigation) that search action conducted in Mukesh Chokshi group has revealed that the said group companies were engaged in providing bogus bills for generation of short term/long term capital gains. The main person of the group named Shri Mukesh Chokshi had admitted that all transactions carried out by his group-companies were bogus and he has provided only accommodation bills. It was stated that the assessee was one of the beneficiaries of the above said bogus transactions. On the basis of this information the Assessing Officer reopened the assessment of the assessee by issuing notice u/s. 148 of the Act on 30.3.2011. The assessee had purchased 10,000 shares of Buniyad Chemicals Ltd. in April 2002 and sold the same after e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d income of the assessee. Learned CIT(A) expressed the view that the Assessing Officer had sufficient reason to believe about escapement of income and accordingly, by placing reliance on the decision rendered by Hon'ble Supreme Court in the case of Rajesh Jhaveri Stock Brokers (P) Ltd. (291 ITR 500) and also other cases mentioned in the order, dismissed the ground relating to validity of reopening of the assessment. 4. Before learned CIT(A), the assessee also contended that he was not allowed to cross examine Mukesh Chokshi since assessment has been made by the Assessing Officer on the basis of the statement given by him. Learned CIT(A) rejected the said contention by observing that the assessee did not place evidence on record to su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iled another letter dated 16.4.2012 before learned CIT(A) asking for a copy of statement. Thereafter the assessee filed another letter dated 19.10.2015 before the Assessing Officer asking for copy of statement given by Mukesh Chokshi, since the matter is pending before the ITAT. In response thereof, the Assessing Officer has furnished a letter dated 11.5.2015, wherein the Assessing Officer has stated that cross examination of Mukesh Chokshi is not relevant after completion of the assessment proceedings. Accordingly learned AR submitted that the Assessing Officer has failed to furnish copy of the copy of statement given by Mukesh Chokshi, which was the basis for framing the present assessment. Accordingly he submitted that the Assessing Offi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been cancelled subsequently. 9. We have heard rival contentions and perused the record. We notice that the assessing officer has disbelieved the claim of Long term capital gains only on the basis of the statement given by the broker. However, we notice that the assessee has furnished the details of purchase of shares, copies of share certificates, the details of sale of shares and the details of receipt of money towards the sale consideration. Further it is stated that the sale of shares has taken place through Ahmedabad Stock Exchange. We notice that the above said documents and the claim of the assessee were not examined at all by the AO. We further notice that the assessee has filed return of income showing the purchases in the year r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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