TMI Blog2019 (9) TMI 719X X X X Extracts X X X X X X X X Extracts X X X X ..... nancial Services also and the said profit has been used to purchase the shares of M/s Sunrise Asian Ltd. The assessee has offered the speculation profit for income tax purposes in the immediately preceding year and it has been accepted. The assessee has shown the purchase of impugned shares as investment in the Balance Sheet. Hence the purchase of shares has been accepted. Further the shares have been received in the D-mat account of the assessee and they have been sold through the D-mat account only. Hence the delivery of shares also stand proved. AO has not brought any material on record to show that the assessee was part of fraudulent price rigging. Accordingly, in the absence of any evidence to implicate the assessee or to prove that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sunrise Asian Ltd falls under the category of suspicious long term capital gains on shares. Accordingly he reopened the assessment of the year under consideration. One of the directors of M/s Sunrise Asian Ltd had admitted before the revenue that the prices of shares have been rigged. The AO, after discussing the modus operandi adopted for booking long term capital gain by rigging the prices, came to the conclusion that the transactions of purchase and sale made by the assessee are not genuine. The assessee submitted that he had earned speculation profit in the financial year relevant to the AY 2013-14 and used the same for purchase of shares. The AO disbelieved the contract notes relating to speculation profit. Since there was unusual rise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the source of purchases have been accepted by the assessing officer in the preceding year. (d) The shares have been received in d-mat account of the assessee and they have been sold through the d-mat account only. Accordingly the Ld A.R submitted that the assessing officer has disbelieved the transactions for the reason that the there is huge jump in the prices of shares in view of alleged rigging of prices by the directors of the above said company. He submitted that the AO has not established any link between the assessee and the directors of the company. Accordingly he submitted that the assessee has purchased and sold the shares in the normal course. Accordingly he submitted that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eceived information about suspicious share transactions and on the basis of the same; he has disbelieved the claim of long term capital gains. I notice that the assessee has purchased shares through a broker named M/s Eden Financial Services and sold shares through Intime Equities Ltd. Thus, I notice that the purchase and sale of shares have been carried out through two different brokers. It is not the case of the AO that both the share brokers referred above have been identified as tainted brokers involved in fraudulent transactions. 8. The assessee has earned speculation profit in the immediately preceding year through M/s Eden Financial Services also and the said profit has been used to purchase the shares of M/s Sunrise ..... X X X X Extracts X X X X X X X X Extracts X X X X
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