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TMI Blog2018 (10) TMI 1032X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 and since the issues involved therein are common, the same have been heard together and are being disposed of by a consolidated order for the sake of convenience. 2. The common issues involved in these appeals relate to the confirmation by the Ld. CIT(A) of the action of the AO in disallowing the claim of the assessee for exemption on account of long term capital gain arising from the sale of shares of M/s. Kailash Auto Finance Ltd. by treating the same as bogus and adding the entire proceeds of such sale u/s 68 by treating the same as unexplained cash credit and also making a further addition on account of the commission allegedly paid by the assessee for obtaining the entries for making such bogus claim of long term capital gain by tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . During the course of assessment proceedings, the claim of the assessees for such exemption was examined by the AO and on such examination, he held for the detailed reason given in the assessment orders that the claim of the assessees for long term capital gain was bogus in as much as the entire transactions giving rise to such long term capital gains were accommodation entries. Accordingly, the entire proceeds of sale of shares credited in the books of the assessees were treated by the AO as unexplained cash credits and additions to that extent were made by him to the total income of the assessees u/s 68. He also treated the commission allegedly paid by the assessee for obtaining such accommodation entries as unexplained expenditure and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nproved based on the evidences available on record, are not reiterated for the sake of brevity. The principles laid down in various case laws relied upon by the ld AR are also not reiterated for the sake of brevity. We find that the amalgamation of CPAL with KAFL has been approved by the order of Hon'ble High Court. The ld AO ought not to have questioned the validity of the amalgamation scheme approved by the Hon'ble High Court in May 2013 merely based on a statement given by a third party which has not been subject to cross -examination. Moreover, it is also pertinent to note that the assessee and / or the stock broker Ashita Stock Broking Ltd name is neither mentioned in the said statement as a person who had allegedly dealt with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the SEBI order did mention the list of 246 beneficiaries of persons trading in shares of KAFL, wherein, the assessee and / or Ashita Stock Broking Ltd's name is not reflected at all. Hence the allegation that the assessee and / or Ashita Stock Broking Ltd getting involved in price rigging of KAFL shares fails. We also find that even the SEBI's order heavily relied upon by the ld AO clearly states that the company KAFL had performed very well during the year under appeal and the P/E ratio had increased substantially. Thus we hold that the said orders of SEBI is no evidence against the assessee, much less to speak of direct evidence. The enquiry by the Investigation Wing and/or the statements of several persons recorded by the Inv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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