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2012 (9) TMI 1154

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..... he assessee has challenged the order of the CIT(A) on two grounds. 3. Ground No.1 relates to the grievance that the CIT(A) erred in treating the sale consideration of Rs. 10,56,343/- on sale of shares of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd) as 'Income from other sources' instead of 'Income from Long Term Capital Gains'. Ground No.2 relates to the treatment of purchase transaction of shares of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd) as not genuine. 4. Briefly stated facts of the case are that for the year under consideration, the assessee has sold 11,500 shares of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd) for a .....

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..... es of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd), the deponent replied that no transaction was done on the floor of BSE on behalf of the assessee. On another question relating to the purchase of the shares of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd) the deponent replied that these bills were issued as accommodation entries and no transaction was carried out on behalf of the assessee. After considering the statement of Shri Rajkumar Masalia, the AO concluded that the purchases made by the assessee were not effected in the first place i.e., the purchases were bogus. The assessee was confronted with this finding and explanation was sought from the assessee. The A .....

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..... M/s. Robinson Impex (India) Ltd (Robinson Worldwide Trade Ltd.,). However, the CIT(A) was not convinced with the submissions of the assessee and confirmed the finding of the AO to treat the income of Rs. 10,56,343/- as 'Income from un-disclosed Sources'. 6. The Assessee is in appeal before us against this finding of the CIT(A). The learned Counsel for the assessee submitted that the assessee has at the very first stage has made it clear that the purchases were not made through the Stock Exchange but by offmarket transaction. Therefore, the denial of the BSE that no such transaction has taken place on the floor of the Stock Exchange has no substance as the assessee himself is admitting that the transaction took place out-side the floor of t .....

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..... e not been proved to be genuine. Therefore, the order of the Lower Authorities deserved to be confirmed. 11. We have heard the rival contentions and perused the orders of the Lower Authorities and also the Paper Book submitted by the assessee. It is not in dispute that the shares were purchased in physical form in off-market transaction. It is also not in dispute that the shares were subsequently de-matted and the sales have taken place out of the DMAT A/c. The only dispute relates to the genuineness of the purchases as doubted by the Lower Authorities. We find that the purchases are supported by purchase bills issued by M/s. DPS Shares & Securities Pvt. Ltd., exhibited at Pages 28 to 32 of the Paper Book. We also find that the shares so p .....

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..... Ltd) were purchased on 05-04-2003 for a consideration of Rs. 15191.99 from M/s. DPS Shares and Securities Pvt. Ltd., As per record of the said company, the shares were endorsed in favour of the assessee on 30-04-2003 in physical format only. The AO further states that as per investigation made, these shares were sent for dematerialisation to HDFC Bank on 03-05-2004 and were converted into De-mat form on 22-05-2004. In his Remand Report, the AO has further confirmed the sale transaction made through broker, M/s. Ajmeera Associates Pvt. Ltd., 13. After considering all the above stated facts in totality, we do not find any reason or logic in treating the purchase of 11,500 shares as bogus. The Lower Authorities could have directly verified t .....

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