TMI Blog2015 (7) TMI 1304X X X X Extracts X X X X X X X X Extracts X X X X ..... e stand of the Revenue as well as the assessee in the present case is on similar footing to their respective stands in the case of Jagdish H. Shah (supra). Having regard to the aforesaid similarities, which are not controverted by the Revenue, we deem it fit and proper to rely upon the reasoning taken by the Co-ordinate Bench in the case of Jagdish H. Shah(supra) and hold that the income tax authorities have erred in treating the sale consideration on the sale of shares of Robinson Worldwide Trade Ltd. as an income from undisclosed sources - decided in favour of assessee. - ITA No.6545/MUM/2011 - - - Dated:- 31-7-2015 - SHRI G.S.PANNU, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUDICIAL MEMBER For The Appellant : Dr. K.Shivram / Ms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that assessee had purchased 11,500 shares of Robinson Worldwide Trade Ltd. @ 1.30 per share for a total consideration of ₹ 15,191.99 and had sold the same for a consideration of Rs..11,29,475/-. The AO carried out a verification exercise and concluded that the purported purchase of 11500 shares of Robinson Worldwide Trade Ltd. was nothing but a sham transaction. Accordingly, the AO treated the consideration received on the sale of 11500 shares of Robinson Impex Ltd. of ₹ 11,29,475/- as income from undisclosed sources. This resulted in assessment of ₹ 11,29,475/- as an income under the head income from other sources and consequently the exemption claimed under section 54 EC of the Act with respect to the investments in N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. 6. Having perused the orders of the authorities below as well as the submissions put forth before us, it is evident that similar controversy has been considered by our Co-ordinate Bench in the case of Jagdish H. Shah (supra). The Ld. Representative of the assessee has also placed on record copies of the assessment order as well as order of CIT(A) in the case of Jagdish H. Shah(supra) which reveal that the discussion contained therein is almost similar to the discussion in the impugned orders before us. The enquiries made by the AO in case of Jadish H. Shah (supra) are on similar lines to those made in the case before us. In the case of the assessee as well as in the case of Jagdish H. Shah(supra) the shares were purchased fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 purchased were transferred to DMAT A/c with HDFC Bank. Cop,!! of which is exhibited at Page No. 34 of the Paper Book. We have also considered the letter of the Director of M/s. DPS Shares Securities Pvt. Ltd., addressed to the AO by which the. Director has confianed 'the off-market transaction in physical mode of shares of the 11,500 shares of M/s.Robinson Impex (India) Ltd (Robinson Worldwide Trade Ltd.,). We have also considered the retraction letter of Shri Ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther 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 the transaction from the company itself, whose shares were questioned to be bogus but both the Lower Authorities did not do this exercise. The Remand Report of the AO itself show that the transactions have been treated as genuine subsequently by the AO himself while sending the Remand Report to the CIT(A). We find that the sale transaction of 11,500 shares of M/s.Robinson Impex (India) Ltd. (Robinson Worldwide Trade Ltd.) has been doubted or questi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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