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TMI Blog2023 (12) TMI 339X X X X Extracts X X X X X X X X Extracts X X X X ..... same was duly declared in his, return of income and nothing has been brought on record by the AO that the assessee paid any consideration or benefit in any form to the purchasers of the shares sold. Thus the addition so made should be deleted. 3. The CIT(A) erred in law and on facts in confirming the said addition of Rs. 78,85,851/- made on the basis of certain investigations carried out by the Investigation Wing of the income-tax department and statements of some persons recorded at the back of the assessee but without giving copies of the material gathered and relied by the revenue and also without allowing an opportunity to the assessee to cross- examine them though specifically asked for. 4. Thus, the addition so made ignoring the principles of natural justice and proper opportunity should be deleted. 5. The CIT(A) erred in law and on facts in confirming the addition of Rs. 78.858/- being commission @ 1% on the amount of long term capital gain merely on surmises and conjectures without any basis. Thus the addition so made on presumptions should be deleted. 3. Vide letter dated 15.05.2023, the assessee raised the following additional grounds: "6. The assessee submits th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formation was received from the INV Wing in respect of bogus long term capital gains which was the outcome of search and seizure proceedings u/s 132 of the Act. It is the say of the ld. DR that therefore, the ratio laid down by the Hon'ble Supreme Court do not apply on the facts of the case. 11. Before proceeding further, let us understand the findings of the Hon'ble Supreme Court in the case of Vikram Singh Bhatia [supra]. The relevant findings read as under: "10.8 Insofar as the submission on behalf of the respective respondents - assessees that by way of amendment to Section 153C by Finance Act, 2015, it brings into its fold, the assessees - persons, who were not so far covered by it and, therefore, it affects the substantive rights of the assessees and, hence, it should not be made applicable retrospectively, is concerned, the submission seems to be attractive but deserves to be rejected. As observed hereinabove, even the unamended Section 153C pertains to the assessment of income of any other person. The object and purpose of Section 153C is to address the persons other than the searched person. Even as per the unamended Section 153C, the proceeding against other pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to Secstion 153C of the Act, 1961 vide Finance Act, 2015 shall be applicable to searches conducted under Section 132 of the Act, 1961 before 01.06.2015, i.e., the date of the amendment. The impugned common judgment and order passed by the High Court, therefore, deserves to be quashed and set aside and is accordingly quashed and set aside. However, as before the High Court respective assessment orders were challenged mainly on the aforesaid issue, which is now answered in favour of the Revenue as above, we reserve the liberty in favour of the respective assessees to challenge the assessment orders before CIT (A) on any other grounds which may be available and it is observed that if said appeals are preferred within four weeks from today, the same be considered in accordance with law and on their own merits, on any other grounds. Present appeals are accordingly allowed in terms of the above. However, in the facts and circumstances of the case, there shall be no order as to costs." 12. What we gather from the judgment of the Hon'ble Supreme Court [supra] is that, even before the amendment by the Finance Act, 2015, searches conducted prior to 01.06.2015 were also subjected to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in providing the accommodation entries of bogus LTCG/Loss have furnished the modus operandi of the activity, the names of the penny stocks and the companies used to rig the price and to make the payment for the purpose at artificially high/ low prices. The cash trail of the cash received from the beneficiaries has also been detected by the department in some cases. The entry operators have created thousands of companies to make payments and have used multi layering of the payment so as to avoid to detection of the source of the investment. However, the department could' detect the cash trail 1.0 large extent. (3(g). On going through the detailed report of the wing on this scam, it is noticed that the name of the stock of M/ s Unno Industries Ltd. also 'appears. On correlating the details filed by the assessee in respect of the LTCG claim with the findings and the conclusions of the report of the it is found that the case of assessee is very much similar to the characteristics of the stocks found out by the wing, the name of the stock M/s. Unno industries* Ltd. is appearing the report which have been used by the scamsters to generate bogus LTCG/Loss. Even the name of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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