9911796707
TMI Blog2014 (12) TMI 1305X X X X Extracts X X X X X X X X Extracts X X X X ..... 9/Mum/2014 are reproduced below: The following grounds of appeal are independent of, and without prejudice to, one another: 1. The Commissioner of Income-tax (Appeals) -23, Mumbai (hereinafter referred to as the CIT(A) erred in upholding the action of the Assessing Officer in issuing notice under section 148 of the Act and framing the impugned order. The appellants contend that on the facts and in the circumstances of the case and in law, the CIT(A) ought not to have upheld the action of Assessing Officer inasmuch as the issue of notice under section 148 is bad in law and needs to be quashed and consequently, the impugned order of reassessment. 2. The CIT(A) erred in upholding the action of the Assessing Officer in treating Rs. 2,44,406 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espectively. The AO issued show cause notice to the assessee to explain that as to why the investment may not be added to the income of the assessee u/s 69 of the Income Tax Act as assessee did not pay any amount to the broker for purchase of the shares. In the reply, the assessee submitted that all the shares were received in demat account of the assessee and they were sold and full gain of Rs. 89,648/- was received by account payee cheque and complete details of the said transaction is reflected in the return of income. The AO did not accept such explanation of the assessee. He doubted the genuineness of the transaction on the ground that assessee did not pay any amount towards purchase of the shares and even the purchase was without marg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd purchase of shares of M/s Alliance Intermediaries and Network Private Limited wherein an amount of Rs. 3,07,177/- is added on account of investment in the purchase of shares and STCG of Rs. 88,583/- is also added. 7. After narrating the facts, it was submitted by learned AR that though the assessee is not pressing ground relating to reassessment but notice u/s. 148 of the Act was issued only on the ground that M/s Alliance Intermediaries and Network Private Limited was a concern run by Sri Mukesh Choksi who during the course of search on the group cases had admitted that only profit & loss entries had been provided by their concern. It was submitted that assessee had produced all relevant evidences in the shape of broker's note of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and purchase of shares which is duly credited in the books of accounts. The assessee did not make any investment as per the documents and details submitted to the AO and in absence of any evidence brought on record, it would be incorrect to presume that any investment was made by the assessee in the sale and purchase of shares. It was further submitted that no evidence has been brought on record by the revenue to show that the details submitted by the assessee were not correct. Thus it was submitted by learned AR that the addition made by the AO and upheld by the CIT(A) is uncalled for and should be deleted. 8. On the other hand, learned Departmental Representative (DR) submitted that according to the information with the department M/s A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Network Private Limited was not the member either of BSE or of NSE. It is not even a case of the assessee that M/s Alliance Intermediaries and Network Private Limited is member either of BSE or NSE. Therefore, enquiry made by the AO is irrelevant. The AO was required to make enquiry with M/s Alliance Intermediaries and Network Private Limited which is not done by the AO. If department wants to assess the amount of purchase of shares in the hands of the assessee then it is required to show that assessee infact has invested that amount in the purchase of shares as it is a claim of the assessee that it did not invest any amount in the purchase of shares. There is complete absence of such material according to which it can be said that assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
