9911796707
TMI Blog2018 (2) TMI 1828X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessees purchased 32,000 shares and 28,500 shares respectively of Sawaca Business Machine Ltd. through ASE Capital Markets Ltd., who are registered brokers of Stock Exchange Board of India. In fact, the shares were purchased in May, 2012. According to the Ld. counsel, both the assessees purchased the shares at the rate of 78/- per share. In September, 2012, the shares were sold by the assessees at the rate of 222.03 per share. Both the assessees declared the profit on purchase and sale of shares under the head "short term capital gain" and paid the taxes also. However, according to the Ld. counsel, the Assessing Officer found that one Shri Chandrakanth Shah provided accommodation entry to some persons, therefore, the purchase of shares by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing to the Ld. counsel, all these documents were examined by the Assessing Officer as well as the CIT(Appeals), however, the same were rejected only on the ground that the assessees purchased the shares off market. According to the Ld. counsel, the fact is that both the assessees purchased through a broker recognised by the Security Exchange Board of India, therefore, it is obvious that the shares were purchased at the market rate through recognised security exchange. Moreover, the purchases were made at the market rate and it was sold at the market rate. Therefore, according to the Ld. counsel, the CIT(Appeals) is not justified in holding that the selling rate of the shares were artificially hiked. 4. On the contrary, Shri AR.V. Sreenivas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on entry to various persons. The question arises for consideration is whether the assessees' transaction in respect of purchase of shares and sale of shares through ASE Capital Markets Ltd. is a bogus transaction? This Tribunal is of the considered opinion that when the fact that ASE Capital Markets Ltd. is a recognised stock broker is not in dispute and the assessees have also purchased the shares at the market rate and sold the same at market rate through recognised stock broker of Security Exchange Board of India, it cannot be said that the transaction was a bogus one. 6. In the case of both the assessees, the CIT(Appeals) proceeded as if the assessees purchased the shares through off market. The material available on record clearly ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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