TMI Blog2019 (8) TMI 1732X X X X Extracts X X X X X X X X Extracts X X X X ..... nkar Halder, JCIT, Sr. DR ORDER Per Shri A.T.Varkey, JM This is an appeal preferred by the assessee against the Order of the CIT(A)-14, Kolkata dated 05.10.2018 for assessment year 2015-16. 2. The main grievance of the assessee is against the action of Ld. CIT(A) in confirming the addition of ₹ 15,95,720/- claimed by the assessee as Long Term Capital Gain (hereinafter LTCG ) on sale of shares of M/s. Sulabh Engineering and Services Ltd. (hereinafter M/s. SESL ) under Section 68 of the Income Tax Act, 1961 (hereinafter the Act ). 3. Brief facts of the case as noted by the AO is that he got information from the Investigation Wing that the assessee had indulged in bogus LTCG from the transaction of purchase and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad sold the same at the rate of 246.05 per share in June, 2014 meaning thereby that the assessee got 203 times of his purchase value within a very short period of time which is unusual and unbelievable. Thereafter, the AO reproduced charts showing the graphic description about the price rise of this share and thereafter, he reproduces the financials of the company and was of the opinion that the astronomical increase in price after January, 2013 is beyond the human probabilities and is a colourable device to convert the unaccounted money into tax exempt income. Thereafter the AO describes the general modus operandi adopted by unscrupulous brokers and certain penny stock companies and thereafter, he finds fault with the assessee purchasing s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... page no. 2 (back side of PB) wherein it is noted that the payment has happened through banking channel on 10.01.23013. The DEMAT statement showing that the shares of M/s. SESL is found placed at page 3 (PB back side). The DEMAT statement showing supply of shares from 800 to 8000 shares as on 06.02.2013 is also seen placed at page 3 (PB back side). I also note the sale of 4000 of M/s. SESL on 18.06.2014 for a total amount of ₹ 9,84,198.27/- through the same broker and the contract note evidencing the same is found placed at page 5 of the PB. Another lot of 4000 shares were sold on 22.08.2014 for a total amount of ₹ 9,61,910.78/- and the contract note evidencing sale is found placed at page 4 of the PB. I also note from the bank ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eers and Services Ltd. (PB-2). The assessee submitted the bank detail for payment (vide PB-3 to 5). The assessee submitted before us NSDL statement showing preferential allotment of 75000 shares of M/s Sulabh Engineering and Services Ltd. We note that the assessee also submitted extract of resolution passed and screenshot of money control showing splitting of face value from ₹ 10 to ₹ 1 of M/s Sulabh Engineering and Services Ltd. (PB-11 to 13). The assessee submitted the NSDL statement showing allotment of 7,50,000 shares of M/s Sulabh Engineers and Services Ltd. at fair value of ₹ 1 (PB-14 to 17). The balance sheet and profit loss account along with investment schedule showing 7,50,000 shares of M/s Sulabh Engineers and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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