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TMI Blog2021 (8) TMI 97X X X X Extracts X X X X X X X X Extracts X X X X ..... othari and Shri. Kashyap Kothari, the assessees claimed to have purchased the shares of a company, Zen Shaving Ltd in July/June 2006, respectively by paying cash and sold the same on 15.09.2008/21.10.2008 & 04.11.2008, respectively, through broker M/s. Alliance Intermediateries and Network Pvt. Ltd., and claimed the gain as a long term capital gain and which was claimed as an exempted income from tax. A search and seizure action conducted in the case of M/s. Mahasagar Group of companies on 25.11.2009 by the Investigation Wing (Mumbai). The key person of the group, Shri. Mukesh Choksi, admitted that he and his group were engaged in fraudulent billing activities and also provided accommodation entries so that their clients could introduce the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals. Therefore, as a model, the grounds of appeal in the case of Smt. Manjula Kothari is extracted as under: "1. The order of the learned Commissioner of Income Tax (Appeals) is erroneous, illegal, opposed to facts and is liable to be reversed. 2. That the learned Commissioner of Income Tax (Appeals) has erred in upholding the jurisdiction of the AO to re-open the assessment u/s. 147 of the Act insofar as there is no tangible material brought on record to show the escapement of income, so as to invoke the extended period of limitation to re-open the assessment. 3. That the learned Commissioner of Income Tax (Appeals) failed to see that there has been gross violation of principles of natural justice in so far as the statement from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... promoting the company and inflating the share price of the company. 8. The appellant craves leave for any other additional grounds that may be abused or permitted to be abused at the time of the hearing." 3. The cases were posted for hearing through video conferencing. Though, the hearing notices were served on the respective assessees on 18.02.2021, which was placed on record, none appeared for the assessees at the time of hearing through video conferencing on 20.04.2021. Therefore, we heard the Ld. DR. The Ld. DR submitted that on the information/evidences collected consequent to search and seizure action, the AO re-opened the respective assessees cases. After affording adequate opportunity to the assessees and taking into account the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has entered into the transaction knowing well that the companies agents and other persons involved in the organized racket are aiding the appellant to create bogus share transaction results through a series of sham transactions. 16. In view of the facts and circumstances of the case discussed above, I hold that the transactions are sham aimed only to bring unaccounted money in the guise of long term profit on sale of shares being accretion to capital account and the addition is confirmed." Since, the assessees have not disputed the findings recorded by the Ld. CIT(A) with relevant material before the Hon'ble Tribunal, the ld. DR pleaded that these appeals be dismissed. 5. We heard the Ld. DR. It is clear from the orders of the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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