TMI Blog2012 (9) TMI 1154X X X X Extracts X X X X X X X X Extracts X X X X ..... nson Worldwide Trade Ltd.,) has not been doubted or questioned by the Lower Authorities. A simple logical question arises if the shares were never purchased, how can they be sold subsequently? After considering all the facts and submissions, we find that both the Lower Authorities have grossly erred in treating the sale consideration as ‘Income from un-disclosed sources’. - ITA No. 6557/Mum/2011 - - - Dated:- 5-9-2012 - SHRI D.K. AGARWAL, JUDICIAL MEMBER AND SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER For The Appellant : Shri K. Shivaram, And Shri Rahul K. Hakani For The Respondent : Shri Mohit Jain (DR) ORDER PER N.K. BILLAIYA, A.M. With this appeal, the assessee has shown his grievance against the order o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion to the purchase transaction made by the assessee through M/s. DPS Shares Securities Pvt. Ltd., The surveillance and supervisory Department of BSE vide its letter dt. 20- 08-2007 replied that no trades were found to be executed by the Member, DSP Shares Securities Pvt. Ltd., in the scrip M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd). The BSE further stated that in the scrip Alfa Laval Ltd., with the trades by the Member at the Exchange, many discrepancies were observed in the client codes and the quantity of shares traded etc., The BSE attached the discrepancy as per the brokers notes and the trade Log of the broker as per the BSE. The AO further issued summons u/s. 131 (1) of the Act to the Prin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Impex (India) Ltd (Robinson Worldwide Trade Ltd.,). The assessee further relied upon the letter from the Directors of M/s. DPS Shares Securities Pvt. Ltd., dt. 19-12-2007 by which the Director of the Broker Company confirmed the transaction of purchase of 11,500 shares of M/s. Robinson Impex (India) Ltd (Robinson Worldwide Trade Ltd.,) by the assessee and also confirmed that the shares were not traded in the Stock Exchange and were sold in physical mode by off-market. However, the AO did not accept the purchase transaction as genuine and treated the entire purchase of 11,500 shares of M/s. Robinson Impex (India) Ltd (Robinson Worldwide Trade Ltd.,) as bogus and accordingly went on to treat the entire consideration received on sale of 11,5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hout affording any opportunity to cross-examination. The learned Counsel further pointed out that the said Rajkumar Masalia, whose statement was recorded by the AO has retracted from his statement as is evident from his letter addressed to the ITO which is exhibited at Pg. No. 37 of the Paper Book. 9. The Counsel further pointed out that the Lower Authorities have grossly erred in ignoring the confirmation letter of the Director of the Broking Firm wherein the Director has categorically confirmed the transaction. The Lower Authorities further erred in ignoring the DMat statement, the contract notes relating to sale of shares, and the Bank s statement submitted by the assessee to substantiate his claim. The Counsel concluded that the purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion letter of Shri Rajkumar Masalia addressed to the AO by which he accepted that he was not aware of the transaction and he has stated wrong facts during the course of his statement recorded by the AO. 12. We find that during the course of the appellate proceedings, the CIT(A) has called for a Remand Report from the AO relating to the purchase of 11,500 shares of M/s. Robinson Worldwide Trade Ltd., (formerly known as Robinson Impex (India) Ltd). We have perused the Remand Report of ITO 10(3)(2) Mumbai dt. 11-04-2011. In his Remand Report, the AO states that an opportunity of crossexamination of Shri Rajkumar Masalia was given to the assessee on 18-02-2009, 29-04-2009 and 09-11-2009. However, despite of giving aforesaid opportunities, Sh ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
