TMI Blog2018 (11) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... that the very reason, on which the AO made the impugned addition would fail. The various case laws relied upon by the assessee support her claim. Accordingly we are of the view that the Ld CIT(A) was justified in deleting the impugned addition made by the AO. - Decided in favour of assessee. - I.T.A. No. 4130-4131/Mum/2015 - - - Dated:- 16-11-2018 - S/Shri B.R.Baskaran (AM) Amarjit Singh, JJ. Appellant by Shri J.P.Bairagra Respondent by Shri Manoj Kumar Singh ORDER B.R. Baskaran, J. Both the appeals filed by the Revenue are directed against the orders passed by the learned CIT(A)-41, Mumbai and they relate to A.Ys. 2007-08 2008-09. The Revenue is aggrieved by the decision of the learned CIT(A) in deleting the addition relating to bogus capital gain in both years under consideration. 2. Since the issues urged in these appeals are identical in nature, they were heard together and are being disposed of by this common order. 3. The Revenue carried out search and seizure operations u/s. 132 of the Act in the hands of M/s. Mahasagar Securities Private Limited and its group companies, which are controlled by a person named Shri Mukesh Choksi. It ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned DR, in particular, invited our attention to the report of Investigation Wing, wherein it is stated that broker licence of M/s. Alliance Intermediaries Network Pvt. Ltd. has been cancelled. 6. On the contrary, the learned AR submitted that the main license of M/s Alliance Intermediaries Network P Ltd was not cancelled and it is only the sub-brokers licence was cancelled. He further submitted that M/s. Alliance Intermediaries Network Pvt. Ltd. has reported share transaction details to the Income Tax Department and hence shares purchased by the assessee through them have been duly reflected in annual information report received by the Assessing Officer. He submitted that the AO has also mentioned the same in the assessment order also. He submitted that this fact alone would prove that the assessee has purchased shares through M/s. Alliance Intermediaries Network Pvt. Ltd. He submitted that the assessee has made payments for purchases through banking channels. He further submitted that the Assessing Officer has placed his reliance on the general statement given by Shri Mukesh Choksi. He submitted that Shri Mukesh Choksi has not identified transactions of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mediaries 30000 Kotak Securities Ltd. 30000 Jai Corp Alliance Intermediaries 1050 Balance c/fd Hindustan Zinc Alliance Intermediaries 2200 Kotak Securities Ltd. 2200 These shares were transferred to Kotak Securities account and thereafter, sold through Kotak Securities. 3.9 The Appellant also bought on record that all the shares sold through Kotak Securities could not have been sold had they not been genuinely purchased by the Appellant. Even if it is assumed that the shares were first sold through Kotak Securities then the Appellant would have had to purchase the shares to square off the transactions. Your Honour may kindly note from the datewise scrip report that the Appellant has not purchased the same shares subsequently after the date of sale. Thus, it can be safely and easily concluded that the sales have taken place after purchases only and that all purchases are genuine. The sale of the shares can be evidenced from the scripwise details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd sold through Kotak Securities. The Appellant has also submitted the ledger account of Alliance with the bank account statement evidencing the details of payments made for the share transactions effected through Alliance. Further, the Appellant also drew the attention to the case of Shri Roopchand H. Mehta v. ITO 14(1)(2), ITA No.5027/Mum/2007 wherein the Mumbai Bench GSMC) has held that the statements made by Mr. Mukesh Chokshi is not worthy to be accepted as in the cross examination he has admitted that the transactions are genuine and thereafter, he again controverted the same. The Appellant has also relied on the decision of the jurisdictional Hon'ble Bombay High Court in the case of ADIT v. Miss Lata Mangeshkar, 97 ITR 696 wherein it has been held that where the evidence suffered from severe infirmities, the additions cannot be made in the books of the assessee merely on the basis of the entries found in the third party books. The statement of Mr. Mukesh Chokshi states that he had mainly issued accommodation entries through M/s. Alliance Intermediaries Network Pvt. Ltd, Goldstar Finvest and Mahasagar Securities. The AO has relied on the said statement without ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proves that the statement given by Shri Mukesh Choksi that his group has provided only accommodation entries is wrong and against the facts available on record. We notice that the assessee has furnished demat account of the assessee and further she has purchased the shares by making payment through banking channels. It was not denied that the demat account shows the transactions of purchase and sale of shares. All these facts show that the very reason, on which the AO made the impugned addition would fail. The various case laws relied upon by the assessee support her claim. Accordingly we are of the view that the Ld CIT(A) was justified in deleting the impugned addition made by the AO. 10. We shall now take up the appeal filed by the assessee for AY 2008-09. The Ld A.R submitted that the AO has added the purchase cost of shares of Hindustan Zinc and Alchemist shares during this year also, while the assessee has purchased those shares in the preceding year. The facts relating to the addition made in this year is identical with the facts available in AY 2007-08, i.e., the reasoning given by the AO for making the addition and the contentions of the assessee are identical. We notic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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