TMI Blog2021 (7) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year. In my opinion, if the sale of share is bogus, then the purchase of the same shares is also bogus. If the case of the Revenue is that assessee's own money has come back to the assessee in shape of accommodation entry, then, the money of the assessee had gone in the preceding year in shape of purchase of the shares which were sold during the year. No action appears to have been taken in the preceding assessment year treating the purchase of the shares as bogus. Once such bogus purchase is sold then the entire amount, cannot be added u/s. 68 - set aside the order of the CIT(A) on this issue and direct the AO to delete the addition - Decided in favour of assessee. - ITA No. 8835/Del/2019 - - - Dated:- 7-7-2021 - R. K. Panda, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eated as filed in response to the notice u/s. 148 of the IT Act. The assessee also requested for supply of reasons which was duly provided to the assessee. The assessee objected to the reopening of the assessment and the AO, vide order dated 5th December, 2017, disposed of the objections by rejecting the same. 3. Subsequently, the AO issued notice u/s. 142(1) of the Act calling for certain details. The assessee appeared before the AO and filed the requisite details. It was submitted that during F.Y. 2009-10, relevant to A.Y. 2010-11, the assessee had sold 5000 shares of Shree Govind Devji Biogenics Pvt. Ltd. for a sale consideration of ₹ 10 lakhs on 17th March, 2010 to Sunny Cast Forge Pvt. Ltd. Relying on various decisions, it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as the addition u/s. 68 of the Act on merit. 7. The ld. Counsel for the assessee submitted that the assessee has sold the investment during the year which is appearing in the balance sheet at the beginning of the assessment year and the shares so sold are not in the nature of penny stock. He submitted that the nature of transaction was not verified by the AO and he has not seen the movement of the assets from the balance sheet. Therefore, the entire reassessment proceedings have become null and void. Referring to the recent decision of the Hon'ble Delhi High Court in the case of Synfonia Tradelinks Pvt. Ltd. vs. ITO, vide W.P.(C) 12544/2018, order dated 26th March, 2021, he submitted that the Hon'ble High Court has thread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that the order of the CIT(A) be upheld. 10. The ld. Counsel in his rejoinder submitted that at the time of reply of the assessee to section 148 notice, it was clearly mentioned in the objection that transaction in question is of sale of investment and full details were given on the basis of which the AO had issued notice u/s. 133(6) of the Act. Therefore, it is wrong on the part of the ld. DR to say that only verbal argument was made and no evidence was given to the AO during the course of assessment proceedings. 11. I have considered the rival arguments made by both the sides, perused the orders of the Assessing Officer and CIT(A) and the paper book filed on behalf of the assessee. I have also considered the various decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is a fact that the assessee, during the impugned assessment year, has sold the shares of M/s. Shree Govind Devji Biogenic Pvt. Ltd. to M/s. Sunny Cast and Forge Pvt. Ltd. for an amount of ₹ 10 lakhs. The assessee has purchased the shares of Shree Govind Devji Biogenic Pvt. Ltd. during the F.Y. 2008-09, relevant to A.Y. 2009-10 and were shown in the balance sheet of the assessee company under the head 'Investments' which is discernable from page 17 of the paper book. I find, the assessee, during the year, has sold the investment and has received the amount by cheque and, therefore, in my opinion, provisions of section 68 of the Act cannot be applied to realization of investment which was duly reflected in the balance sheet of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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