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TMI Blog2015 (10) TMI 2763X X X X Extracts X X X X X X X X Extracts X X X X ..... l: The Ld. Commissioner of Income-tax (Appeals) [hereinafter referred as "CIT(A)"] erred in confirming the action of the Assessing Officer on determining the total income at Rs. 60,97,647/- as against the returned income of Rs. 40,15,410/- by making fallowing additions and disallowances without appreciating the facts and circumstances of the case. A. Addition on account of alleged artificial capital gain Rs. 54,44,645/- B. Addition on account of alleged payment of commission Rs. 2,72,232/- A. Addition on account of alleged artificial capital gain Rs. 54,44,645/- 2. The Ld. CIT(A) erred in confirming the addition of Rs. 54,44,645/- made by the Assessing Officer on the ground that the transaction of purchase and sale of shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the levy of interst under section 234A, 234B, 234C is not justified as the Assessee denies the same. 7. The appellant craves leave to add, to alter or amend any of the ground before or at the time of hearing. 2. Both the parties have made submissions on the aforesaid grounds. The primary issue that arises for our consideration in this appeal is that whether the action of the lower authorities in treating the long term capital gain arising out of shares done by the assessee during the year is genuine or not. 2.1. During the course of assessment proceedings, it was noted by the AO that during the year the assessee has disclosed Long Term Capital Gain of Rs. 36,34,635/- from sale of share of script "Fast Track", as per following det ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely M/s. Fast Track Ltd., and that Sh. Narendra Shah appeared on behalf of one of the brokers through whom shares were purchased and stated that impugned transactions were bogus. Similarly, Sh. Vishal Shah also attended before the AO on behalf of the other brokers namely M/s. Vijay Bhagwandas & Co. through whom shares were sold, and statement of Shri Vishal Shah was recorded, wherein he also stated that no genuine business transactions have been made by the said broker with the assessee. Keeping in view, all these facts and circumstances of the case, the AO finally held that in fact purchase as well as sale transactions of the script Fast Track Entertainment was bogus. Thus, the AO treated the amount of long term capital gain, as shown by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and circumstances of the case, he concluded that purchase and sale of impugned shares was bogus. Resultantly, long term capital gain disclosed by the assessee was also bogus, and therefore additions made by the AO on account of bogus capital gain and commission thereon were confirmed. 2.3 We have gone through the arguments made by both the sides and the orders of the lower authorities. During the course of hearing, our attention was drawn on various evidences filed by the assessee, before the AO and before the Ld. CIT(A), establishing that purchase of shares of Fast Track Entertainment Ltd. was done by the assessee in F.Y. 2002-03 and sale of the shares have been done in impugned F.Y. i.e. F.Y. 2004-05. Our attention has also been drawn o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be relied upon. On the other hand, Ld. DR fairly accepted that though the assessee had submitted requisite documentary evidences in support of its claim and AO could not bring on record contrary evidences to contradict the evidences filed by the assessee, but there statements of few persons against the assessee. However, when bench put across factual queries to the parties, both the parties i.e., Ld. Counsel as well as Ld. DR fairly agreed that there were some gaps and contradictions. It has been stated by the AO in the assessment order, that there is no Demat account. On the other hand, Ld counsel has contended that shares were converted in the Demat account on the sale of shares. Ld. AO has field to verify the demat account. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X
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