TMI Blog2022 (4) TMI 1510X X X X Extracts X X X X X X X X Extracts X X X X ..... aw. Decided against revenue. - R/Tax Appeal No. 294 of 2021 With R/Tax Appeal No. 295 of 2021 - - - Dated:- 12-4-2022 - Honourable Mr. Justice J.B. Pardiwala And Honourable Ms. Justice Nisha M. Thakore For the Appellant No. 1 : Mr. Varun K. Patel (3802). for the Opponent No. 1 : Ms. Vaibhavi K. Parikh(3238). ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. This tax appeal under Section 260-A of the Income Tax Act, 1961 (for short the Act, 1961 ) is at the instance of the revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Surat Bench, Surat dated 07.01.2021 in the ITA No.7/SRT/2019 for the A.Y.2014-15. The revenue has proposed the following question of law for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arding the physical delivery of the shares etc. The Assessing Officer also took notice of the fact that the overall financial condition of the company was poor. The Assessing Officer further took notice of the fact that the entry operators had accepted the modus operandi of providing bogus LTCG through the purchase and sale of shares of few companies. 4. The CIT (A) dismissed the appeal filed by the respondent-assessee holding as under; 5.14 The assessee has not at all been able to adduce cogent evidences in this regard. There is no economic or financial justification for the sale price of these shares. The so called purchaser of these shares has not been identified despite efforts of the AO. The broker company through which shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We note that there is no dispute regarding date of purchase of shares. Price of the shares Rs.2- /instead of Rs.0.55/- per share, confirmed from the party. The shares which the assessee had acquired were later on demated and then the assessee sold the shares at stock exchange through registered stock broker after making payment of STT. Neither the Stock Exchange or SEBI has disputed the assessee s transaction nor was any action against the assessee s broker taken by BSE or SEBI. The assessee s dealings in shares are supported by the contract notes issued by broker as well as demat account. Genuineness of contract notes or demant accounts have not been disputed even in the show cause notice by the assessing officer. The Ld Counse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show that these documents and evidences filed by the assessee are false. The assessee merely acted on the basis of such market information and happened to get phenomenal gain. It could have been otherwise as well. The rags to riches story in the stock market are galore. It has been submitted that the alleged, circumstantial evidence and material has led the Assessing Officer to believe that the real is not the apparent. In the absence of any link between the assessee and the alleged, admissions of the directors and brokers, human probability is being used as a vague and convenient medium for the department s conjectures. To draw an adverse inference without any admissible evidence on record, is bad in law. The Hon ble Supreme Court i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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