TMI Blog2019 (5) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... LD THAT:- 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 scrips during impugned AY has taken place in stock exchange through an independent broker namely M/s JCSL and the delivery of the shares have been given from the assessee s demat account and the sale consideration has been received through banking channels. The assessee is in possession of broker bills contract notes in respect to purchase as well as sale of these scrips. There is credit and debit of shares in assessee s demat account. The scrips are of reputed corporate entities like IFCI, Indian Bank Jai Corp. Nothing on record establishes that the broker namely M/s JCSL was, in any manner, connected with the tainted group. Therefore, there could be no occasion to treat the sale transactions as bogus transaction. As a natural corollary, since there could be no sale of scrips without actual purchase of scrips, the purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ], Appeal No. CIT(A)-45/ITO-33(1)(2)/ITA-53/2014-15 d ated 04/03/2016 qua confirmation of two additions of ₹ 28,02,666/- ₹ 4,52,994/-. 2.1 Brief facts are that the assessee, 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 ₹ 33.52 Lacs after certain addition as against returned income of ₹ 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 ₹ 28.02 Lacs. Further, the assessee was stated to have taken bogus purchase bills towards purchase of shares of MMTC for ₹ 4.52 Lacs. During the course of search proceedings, statement of Shri Mukesh Chokshi, who was stated to be managing all the group entities, was recor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordingly, 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-matted into assessee s account was also not available. Therefore, it was concluded that no evidence was placed on record whether the shares were purchased / held in physical form or demat form. It was also noted that M/s AINPL was not a sub-broker during the period 2007-2009 and the transactions were also not carried out through stock exchanges. The Security Transaction Tax [STT] Charged by the entity was not deposited in government tre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ord or folder. To support the same, our attention has been drawn to information obtained by the assessee under The Right to information Act, 2005 vide order dated 01/02/2018, a copy of which has been placed on record. However, the revenue has controverted the same by submitting letter dated 24/07/2018 issued by concerned Ld. Income Tax Officer-33(1)(1) enclosing the statement of Shri Mukesh Choksh i dated 16/01/2013 which formed the basis of reopening and also list of beneficiaries for FY 2007-08 uploaded on the ITD System. Our attention has been drawn to the fact that the said information is being supplied as per the direction of the bench vide order sheet entry dated 28/06/2018. Upon perusal of the Ld. AO s reply, prima -facie, it appears that the requisite information in the shape of statement of Shri Mukesh Chokshi along with list of beneficiaries was very much available on the record so as to trigger reassessment proceedings. Therefore, we are not inclined to agree with the submission made by Ld. AR 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 asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss 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 view the totality of facts circumstances, we are inclined to delete the impugned additions of ₹ 28,02,666/-. This ground stand allowed. 7. The second addition of ₹ 4,52,994/- which has been added to the income of the assessee as unexplained investments. At the outset, upon perusal of financial statement for impugned AY, it is noted that the stated investments have duly been reflected in assessee s Balance Sheet as on 31/03/2008 and there could be no occasion to consider them as unexplained investment. In support of the purchases, the assessee has placed on requisite documentary evidences in the shape of broker bills, contract notes, ledger co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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