9911796707
TMI Blog2020 (2) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... equity shares of Pine Animation Limited (PAL). 3. Briefly stated, the facts of the case are that assessee's case was selected for scrutiny on the ground of 'Suspicious sale transaction in shares (Penny stock tab in ITS)'. The Assessing Officer (AO) observed that the assessee declared exempt long term capital gain on sale of shares pertaining to Four K Animation (Pine Animation Limited) amounting to Rs. 14.89 lakh. As per the investigation report available with him, the AO noticed that the scrip of PAL was used for providing accommodation entries to several parties, which was also banned by the SEBI for its illegal activities. The assessee was called upon to establish the genuineness of the transaction of long term capital gain. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Anil Kumar Khemka through which he was providing accommodation entries. The AO has also referred to statement of Mr. Subrata Halder recorded on 31-12-2014 in which he also described similar modus operandi of providing bogus long term capital gain through accommodation entries. He also admitted of have given accommodation entries in various scrips including PAL. The AO has also referred to statements of Sh. Praveen Kumar Agrawal recorded on 10-02-2015, Sh. Soumen Choudhary recorded on 10-02-2015, Sh. Anil Kedia recorded on 16-06-2016 and Sh. Sumit Kumar Jain on 16-06-2015 and several others who admitted the activity of providing accommodation entries and also used the scrip of PAL for this purpose. The AO also observed that the SEBI passed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The AO has also referred to the statements of various persons, all of whom admitted to be providing accommodation entries with the help of companies including PAL. The SEBI suspended share trading activity of this company for various violations. All these facts cumulatively take me to the irresistible conclusion of the non-genuineness of the transaction of long term capital gain of Rs. 14.89 lakh as declared by the assessee. 5. At this juncture, it will not be out of place to refer to the judgment of the Hon'ble Supreme Court in CIT vs. Durga Prasad More (1971) 82 ITR 540 (SC), in which the assessee claimed before the ITO that income of certain property should not be taxed in his hands as it was a trust property. The ITO rejected the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act, lies upon the assessee. But, in view of section 68, where any sum is found credited in the books of the assessee for any previous year the same may be charged to income-tax as the income of the assessee of that previous year if the explanation offered by the assessee about the nature and source thereof is, in the opinion of the Assessing Officer, not satisfactory. In deciding the issue against the issue, their Lordships held that : `Apparent must be considered real until it is shown that there are reasons to believe that the apparent is not the real and that the taxing authorities are entitled to look into the surrounding circumstances to find out the reality and the matter has to be considered by applying the test of human probabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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