TMI Blog2021 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... ned by the assessee. It is also submitted that police complaint was filed against the said broker for unauthorized trade carried out towards assessee s account and misusing his name. We are of the view that the Assessing Officer could not understand the fraudulent transaction carried out by one Shri Mahendra Shah and made addition of unexplained investment amounting to ₹ 3,35 crores under section 69 of the Act in the hands of the assessee. Hence, we are of the view that the CIT(A) has rightly deleted the addition. We confirm the order of CIT(A) and this appeal of Revenue is dismissed. - ITA No. 5850/Mum/2018 - - - Dated:- 5-3-2021 - Shri Mahavir Singh, VP And Shri S Rifaur Rahman, AM For the Appellant : Shri Jaykumar Menon, CIT DR For the Respondent : Shri Hiro Rai, AR ORDER PER MAHAVIR SINGH, VP: This appeal of Revenue is arising out of the order of the Commissioner of Income Tax (Appeals)]- 28, Mumbai, [in short CIT(A)], in ITA No. CIT(A)-28/IT-896/ITO-12(1)(2)/2011-12 dated 19.07.2018. The assessments was framed by the Income Tax Officer Ward-12(1)(2), Mumbai (in short ACIT/ITO/ AO) for the A.Y. 2009-10 vide order dated 29.12.2011 under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Capital Market Ltd. which clearly reveal that the assessee has not done any kind of bank transactions or buying or selling of shares as mentioned in AIR with any broker. The Assessing Officer vide order sheet entry dated 22.12.2011, Emkay Global Financial Services Ltd. confirmed that they have received a sum of ₹ 3.35 crores from the assessee. Hence, he was asked to as to why this amount should not be treated as unexplained investment under section 69 of the Act. The assessee vide letter dated 23.12.2011 stated that the assessee has not done any financial or share transaction in the Financial Year under consideration. The assessee contended that the ledger account of Emkay Global Financial Services Ltd. (name changed from MK Share and Stock Brokers Ltd.) shown that assessee has given cheques totaling to ₹3.35 crores from State Bank of Patiala. But it was categorically denied having any bank account in Statement Bank of Patiala. The Assessing Officer did not accept the explanation offered by assessee and made addition of ₹3.35 crores deposited with Emkay Global Financial Services Ltd. from State Bank of Patiala as unexplained investment under section 69 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er the information provided under section 133(6) of the Act and the relevant details are as under:- Instruction Date of issue Amount Applicant Name Applicant Address Applicant Account No Beneficiary Name Payable Branch Present Status of Account MDD/AD 203935 21.06.2008 50,00 lac Anand Corporation 131/3, Kabutar Khana, Chokha Bazar, Kalupur, Ahmedabad 65009840641 Emkay Share and Stock Brokers Ltd. SBP- Mumbai (Service Branch) Closed on 03/07/2010 MDD/AD 203995 21.06.2008 50.00 lac Anand Corporation 131/3, Kabutar Khana, Chokha Bazar, Kalupur, Ahmedabad 65009840641 Emkay Share and Stock Brokers Ltd. SBP- Mumbai (Service Branch) Closed on 03/07/2010 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Stock Brokers Ltd. SBP- Mumbai (Service Branch) MDD/AD 203995 21.06.2008 50.00 lacs Anand Corporation 131/3, Kabutar Kahna, Chokla Bazar, Kalupur, Ahmedabad 65009840641 Emkay Share and Stock Brokers Ltd. SBP- Mumbai (Service Branch) MDD/AD 203996 21.06.2008 50.00 lacs Anand Corporation 131/3, Kabutar Kahna, Chokla Bazar, Kalupur, Ahmedabad 65009840641 Emkay Share and Stock Brokers Ltd. SBP- Mumbai (Service Branch) MDD/AD 203994 21.06.2008 50.00 lacs Anand Corporation 131/3, Kabutar Kahna, Chokla Bazar, Kalupur, Ahmedabad 65009840641 Emkay Share and Stock Brokers Ltd. SBP- Mumbai (Service Branch) MDD/AD 204098 26.06.2008 50.00 lacs Anand Cor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a Ahmedabad are not mine and have also not deposited the above cheques/ DD s in any of my bank Accounts. 3) I also state that, the above cheque s DD s, have been deposited in the Account of Emkay Global Financial Services Ltd. Account No.00600340006695 HDFC Fort Branch. 4) I also have to state that, I have not given any cheque s or Shares to Emkay Global Financial Services Ltd. till today. 5) I also have to state that, I have also not received any shares or cheques/ DDs from Emkay Global Financial Services Ltd. till today. Whatever stated herein above is true and correct to the best of my knowledge and belief. 8. It is also noted that the assessee has filed a complaint with Bombay Stock Exchange in respect of unauthorized trade in assessee s account which was already closed. From the reply of advocate Dinesh Tiwari of Bombay Stock Exchange categorically stated that all the trades in the assessee s account were operated by some shah family and also the outstanding liability of ₹8.06 crores in the said account was taken over by one Mr. Mahesh C Shah. Also, in the letter from the broker to the BSE, it has been confirmed that payments in assessee s accoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no comment by the AO on the complaints lodged with various authorities by the assessee, in spite of taking cognizance of the same. [Refer page 6 supra]. xv) The AO has not been able to contradict the RTI information sought and obtained by the assessee regarding the senders of cheques from State bank of Patiala. If the assessee could, how the AO could not conduct the same exercise and even after the assessee conducted the exercise how could the AG not accept or reject the same is beyond comprehension. xvi) The aspect of SEBI norms being violated and also trading transactions not permissible unless from authorised and registered bank account has escaped the comment of the learned AO completely. There is no counter of AO on the SEBI norms prohibiting the acceptance of payments from accounts other than those given in KYC. xvii) The AG has also emphasised the memorandum of understanding very strongly. However, what has escaped this comment is again that the assessee has not signed anywhere on that memorandum and it is completely an ex part interested document which has been created to fulfil nefarious interest of the concerned parties. xviii) The AG has expressed his surpri ..... X X X X Extracts X X X X X X X X Extracts X X X X
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