TMI Blog2021 (8) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... any of the statement. The assessee has denied having known Shri Nikhil Jain Shri Bidyoot Sarkar whose statements form the very basis of doubting the assessee s transactions. The assessee, as rightly pointed out by Ld. CIT(A), had duly discharged the onus to establish the genuineness of the transactions and the onus was on AO to dislodge them. Except for mere allegations, there is no adverse material against the assessee and the additions are based merely on conjectures and surmises. Another aspect is that the provisions of Sec.68, as invoked by Ld. AO, had no applicability to the fact of the case. The invoking of wrong provisions would make the additions unsustainable in the eyes of law - Decided in favour of assessee. - I.T.A. No.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A) on the above grounds be reversed and that of the Assessing Officer be restored. As evident, the revenue is aggrieved by deletion of addition of ₹ 321.31 Lacs as well as estimate commission of 2% as made by Ld. AO while framing the assessment for the year u/s 143(3) on 30/12/2016. The assessee being resident individual is stated to be engaged in the business of share-broking. 2. We have carefully heard the rival submissions and perused relevant material on record including the orders of lower authorities. The Ld. DR, drawing attention to the factual matrix of the case, pleaded for restoration of the assessment as framed by Ld. AO. The Counsel for Assessee (AR), on the other hand, drawing attention to the findings of learned C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar, it was admitted that M/s Gomti Finlease i.e. KDJRL was a penny stock scrip which was used to provide artificial losses to various beneficiaries. On the basis of the same, the scrip dealt with by the assessee was held to be a penny stock scrip. 3.3 The price movement of this scrip was tabulated by Ld. AO in para-6.5 of the order. It was observed that losses were booked when the share prices were going down whereas the gains were earned when the prices were increasing. It was also noted that price of the share was not commensurate with the financial performance of the company and accordingly, it was concluded by Ld.AO that the share prices of the scrip were manipulated in order to provide artificial gains / losses. These shares were pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellate Proceedings 4.1 During appellate proceedings, the assessee again refuted the allegations of Ld. AO by way of elaborate written submissions which have already been extracted in the impugned order. The Ld. CIT(A), at the outset, noted that provisions of Sec.68 were invoked by Ld. AO to add back the purchase price of shares. However, the payment for purchase of shares was made through banking channels which stood corroborated by various documents submitted by the assessee. All the payment for purchases was made through account payee cheques which were debited in assessee s books of accounts. Thus, the transaction was a debit entry in the books of accounts and therefore, the purchase price paid by the assessee could not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oard of Directors meeting held on 09/03/2013, had decided to invest ₹ 15 Crores in the equity of KDJ Hospital Limited wherein the company had existing equity of 40.76%. By making additional investment, the holding would be more than 75% and accordingly, the scrip exhibited a consistent Higher-Top Higher-Bottom pattern on its charts. It has also exhibited pattern of correcting and bouncing back from its 14 days moving average which also coincided with a lower-bottom in the charts. The stock was trading well above the long-term average i.e. 200 days moving average of the stock, which indicated that the long term trend of the stock was firmly up. The said shares were sold as the price of any script would be market driven. Since the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have taken place on stock exchange through stock-broker. There is movement of shares in assessee s demat statement. The transactions have taken place through banking channels and duly supported by broker s contract notes, demat statements, ledger statements as well as bank statements. The assessee is regular investor in shares. The assessee has always maintained that the transactions were genuine. As against this, the only adverse material in the armory of Ld. AO is the investigation findings. However, the assessee has not been named in any of the statement. The assessee has denied having known Shri Nikhil Jain Shri Bidyoot Sarkar whose statements form the very basis of doubting the assessee s transactions. The assessee, as rightly pointe ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
