9911796707
TMI Blog2021 (12) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... lock in release on 04.09.2013 and split from Rs..10.00 to Rs..1.00 paid up on 21.03.2014 for a consideration of Rs..15,00,000/-. The payment for the purchase was made by cheque. Quantity of shares increased from 20000 shares to 2,00,000 shares on 21.03.2014 due to stock split. Demat of the said purchase was credited for 80,800 shares on 23.07.2014. The price per share was Rs.75/ inclusive of premium of Rs..65/- The assessee sold 2,00,000 Equity shares of Premiere Capital Services Ltd from 23.05.2014 to 25.11.2014 for a gross consideration of Rs..5,49,04,773/- (@ Rs..211.00 to 273.60 per share) on BSE and consideration was received by cheque. 3. Assessing Officer observed that the scrip in which assessee traded was proved to be insignificant, bogus, without business fundamentals and required the assessee to prove the genuineness of the same. In reply assessee vide letter dated 11.12.2017 submitted that the long term capital gain generated was genuine stating the details of section 10(38) of the Act. Not convinced with the submissions of the assessee, the Assessing Officer added the sale proceeds of Rs..5,49,04,773/- u/s 68 of the Act, to the taxable income of the assessee. Assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roda Receipts deposited in Bank of Maharashtra 11. Broker Located in MUMBAI Broker Located in MUMBAI 12. No Cross Examination Allowed No Cross Examination Allowed 13. No Papers of seized material of other Kolkata Parties were given No Papers of seized material of other Kolkata Parties were given 14. Shares sold through NSE/BSE by brokers Shares sold through NSE/BSE through brokers Other points 1. Shares were held for 19 months - Long Term Capital Gain 2. Cross Examination not conducted (Point No 7 Page No 4 of Written Submission) 3. Hon'ble Supreme Court, High Court and Tribunal Judgements in favour of assessee. (List of 60 Judgements enclosed) 4. Addition on the basis of information not disclosed to the appellant. 5. Suspicion cannot take place as evidence. 6. Income assessed without evidence is bad in law. 7. Income cannot be assessed on mere statement basis there has to be some evidences. 8. Addition cannot be made on assumptions, presumptions, surmises and conjectures. 9. Company has an Active Status under Registrar of Company and Income Tax even till date and the Shares are even quoted in NSE/BSE at Rs. 70/- per share." 5. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see on sale of shares is more than the declared value by the assessee. Under these circumstances, the Hon'ble High Court has held that AO is not justified in holding that sale proceeds of Rs. 1,41,08,484/- represented unexplained investment under section 69 of the Act and thus the order of the Tribunal was upheld by the Hon'ble High Court. The Hon'ble Supreme Court also dismissed the appeal of the Revenue filed against the Hon'ble Bombay High Court order. Similarly, in the case of CIT vs. Mrs. Kesar A. Gada (supra) the ITAT deleted the addition by holding that the transaction of purchase and sale of shares made by the assessee were genuine and no addition under section 68 was called for by relying on the decision of Hon'ble Bombay High Court in the case of CIT vs. Mukesh Ratilal Marolia (2005) 12 TMI 457 ITAT, Mumbai. The High Court also dismissed the appeal of the Revenue by holding that no substantial question of law arises for reconsideration. In the case of CIT vs. Sham R Pawar (supra) the Hon'ble Bombay High Court has decided the issue against the Revenue by upholding the order of ITAT wherein the Tribunal has held that the assessee has declared the capital gain on sale of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tter from M/s Talent Infoways Ltd., dated. 29.05.2004, therein confirming the transfer of shares; Copy of the contract notes for sale of shares in the months of September and October, 2005; Copy of the bank statement evidencing receipt of payment for sale of shares; Copy of STT paid statements on the shares of M/s Talent Infoways Ltd ; Copy of its account as appearing in the books of account of M/s Alliance Intermediateries & Network Pvt. Ltd. evidencing the sale of the shares of M/s Talent Infoways Ltd.; Copy of delivery instructions of shares to the depository for dematerialization of the shares; and Copy of the return of income alongwith the computation of income for A.Y. 2005-06, which revealed the speculation income of Rs. 15,975/-, and the fact of purchase of 10,200 shares of M/s Talent Infoways Ltd, alongwith the source of purchase. We find that the aforesaid substantial documentary evidence placed on record by the assessee, which as a matter of fact supported the entire chain of events of purchase and sale of 10,200 shares of M/s Talent Infoways Ltd. by the assessee, was however never rebutted by the A.O on the basis of any concrete and irrebutable evidence which could go t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the assessee is allowed." 13. We have also gone through other decisions cited by the Ld. A.R. and observed that the case of the assessee is squarely covered by the various decisions. We therefore respectfully following the same set aside the order of CIT(A) and direct the AO to delete the addition of Rs. 3,43,62,880/- under section 68 of the Act. Ground No.1 & 2 are allowed. 14. The issue raised in ground no.3 is against the confirmation of addition of Rs. 6,87,257/- by CIT(A) as made by the AO towards arranging this purchase and sale of shares by applying 2% on the total value of transactions. The ground No.3 is consequential to ground no.1 & 2 which have been allowed in favour of the assessee (supra). Accordingly, the addition made under this ground of Rs. 6,87,257/- is ordered to be deleted. Ground is allowed." 7. As the facts are exactly identical and the grounds raised by the assessee in this case are also similar. Respectfully following the above said decision of the Tribunal, we direct the Assessing Officer to delete the addition made u/s.68 and u/s. 69 of the Act. Accordingly, grounds raised by the assessee are allowed. 8. In the net result, appeal filed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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