9911796707
TMI Blog2019 (5) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... see, being resident individual was assessed for impugned AY u/s 143(3) r.w.s. 147 on 03/03/2014 wherein the income was assessed at Rs. 33.52 Lacs after certain addition as against returned income of Rs. 1.20 Lacs filed by the assessee on 16/10/2009 which was processed u/s 143(1). 2.2 The assessee was subjected to reassessment proceedings pursuant to receipt of certain information that during search & seizure operations carried out by the department on 25/11/2009 in the case of M/s Mahasagar Securities Private Limited & its group concerns, it transpired that the assessee stood beneficiary of bogus capital gains on sale of shares of Jai Corporation, IFCI and Indian Bank for Rs. 28.02 Lacs. Further, the assessee was stated to have taken bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogus and accordingly, the same was added to the income of the assessee as non-genuine investments. 3.1 Aggrieved, the assessee agitated the same with partial success before Ld. CIT(A) vide impugned order dated 04/03/2016 wherein upon perusal of reply received from Inter connected Stock Exchange, it came to light that the stated entity i.e. M/s AINPL was no longer a member of the exchange after June, 2004. The perusal of orders of the Tribunal revealed that the aforesaid entity was treated as mere entry provider and its income was determined on estimated basis. It was also noted that although the shares were purchased in AYs 2006-07 & 2007-08, however the payment of the same was not made in those years and the dates on which shares were de- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as not available on record. On merits, it was submitted that the stated scrips were sold through broker namely M/s Joindre Capital Services Ltd. [JCSL] and the delivery was given by way of debit to assessee's demat account and therefore, there was no question of treating the sale transactions as bogus transactions. Since sale transactions were genuine, as a natural consequence, the purchase of the scrips could also not be doubted. Similarly, arguments have been advanced to submit that the addition of alleged unexplained investment was not justified since the transactions were duly recorded in assessee's books of accounts. 4.2 The Ld. DR controverted the same by placing on record letter of Ld. AO to submit that the statement of Shri Mukesh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R that the reassessment proceedings were not valid. The legal grounds stand dismissed. 6.1 Proceeding further on merits, the factual matrix is like that the assessee has purchased the stated scrips during AYs 2006-07 and 2007-08 from M/s AINPL which is evidenced by broker bill, contract notes, ledger extracts etc. and the delivery of the shares is stated to be taken in assessee's demat account. The payment of purchase of scrips has been made through banking channels as evident from assessee's bank statements, ledger confirmation etc. Upon perusal of financial statements, we find that the investment in the scrips was duly reflected by the assessee in its Balance Sheet as on 31/03/2006 & 31/03/2007, which is un-controverted fact. The sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lation of principle of natural justice. 6.3 The assessee, in our opinion, discharged the primary onus of proving the stated transactions by submitting purchases bills, contract notes of purchase of shares, holding letter from the broker, bank pass book evidencing payment through banking channels towards purchase of shares, copy of ledger account in the books of share broker, sales bills and sale contract notes issued by M/s JCSL, copy of ledger account in the books of M/s JSCL, delivery position and global net position demat report, bank pass book evidencing receipt of sale consideration through banking channels. 6.4 It is trite law that the additions could not be made merely on the basis of doubts, conjectures or surmises. Keeping in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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