TMI Blog2018 (7) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... e since the transactions were recorded in books of account and payment was through banking channel do not appeal to us since once it is found that the transactions were merely bogus in nature without carrying out any actual transactions, the receipt thereof in the books could not be held to be genuine. - Decided against assessee. - I.T.A. No. 5124/Mum/2014 - - - Dated:- 29-6-2018 - Shri Saktijit Dey, JM And Shri Manoj Kumar Aggarwal, AM Revenue by : N.Hemalatha,Ld.DR Assessee by : Dalpat Shah,Ld.AR ORDER Per Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year [AY] 2005-06 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-9 [CIT(A)], Mumbai, Appeal No.CIT(A)-9/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... various securities giving rise to Short Term Capital Gains with one of the associated concern namely Alliance Intermediaries Network Private Limited. The said income was offered by the assessee as Short Term Capital Gain, being taxable at concessional rate of 10%. The assessee defended the transaction vide reply dated 21/11/2011. However, Ld. AO noted that although the securities were purchased by the assessee in earlier point of time yet payment thereof was made by the assessee just prior to the sale of the securities. After considering the factual matrix including statement made by Sh. Mukesh Choksi during search proceedings, Ld. AO came to conclusion that the impugned transactions were merely thought out at the end of the year and mer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the grab of sale proceeds of shares just to claim capital gain which are taxed at lesser rates as compared to normal income. 5.3 Though the appellant has tried to justify its transaction but the overall facts and circumstances of the case are showing otherwise. It is worth noting that in the case of Sumati Dayal (214 ITR 801) the Hon ble Apex Court has also held that one has to consider all surrounding circumstances for accepting the genuineness of a transaction. Further, in the case of P Mohankala 291 ITR 278, also after considering the entirety of surrounding circumstances the Hon ble Supreme Court has not accepted the genuineness of cash credits even though the same were received through banking channels. 5.4 In the instant c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a, by submitting that the transactions were merely bogus in nature since in terms of numerous judicial pronouncements, the aforesaid entity namely Alliance Intermediaries Network Private Limited was found to be a mere paper entity without carrying out any actual business and the income of the entity has been estimated on best judgment basis. 5. We have carefully heard the rival contentions and perused relevant material on record. The uncontroverted fact that emerges out of the material on record is that the initial onus to prove the genuineness of the transactions has not been discharged by the assessee. The fact that the aforesaid entity was not, at all entitled to operate at the stock exchange also remain undisputed. The payment of s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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