9911796707
TMI Blog2024 (11) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. 2. The Assessing Officer (hereafter the AO) had issued a notice dated 23.05.2022 under Section 148A (b) of the Act in consequence of the order passed by the Supreme Court in Union of India & Ors. v. Ashish Agarwal: 2022 SCC OnLine SC 543, providing details of certain information that was available with the AO, which suggested that the income of the petitioner for the relevant AY (AY 2015-16) had escaped assessment. 3. The information as set out in the said notice is to the effect that a search was conducted by the investigation wing on a company known as Tradenext Securities Ltd. (Lifeline Securities Ltd.) [hereafter Tradenext] and Kundu Group of Rohtak (hereafter Kundu Group). The search had revealed that family members of Ku ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iciaries had in their possession contract notes for purchase of shares which dated back to F.Y. 2009-10 but on further investigation no such transaction was traced on market/stock exchange. 3. Authorized signatory of Tradenext Securities Ltd had accepted on oath that the contract notes issued by them were bogus and fabricated. He has further stated that these contarct notes were not issued by his company. 4. It was found that shares were purchased on exchange in the name of one Sh. Rakesh Sharma and were subsequently transferred off-market to Tradenext Securities Ltd without any consideration and this was ultimately transferred to the beneficiaries. Sh. Rakesh Sharma has stated that his account was mis-used and he had lodged FIR in rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Lifeline Securities Ltd was also involved in providing accommodation entries through this MO. Mridul Securities P Ltd was found to be one of the 12 dummy demat accounts. 4. It was further found that the Assessee had received 4800 shares of Aurobindo Pharma Ltd worth Rs. 5604000/- from one of the dummy Demat A/c Mridul Securities P Ltd." 6. It is the petitioner's case that the said information does not relate to her and, therefore, was not suggestive of her income escaping during the relevant AY. The petitioner filed a response to the notice issued under Section 148A (b) of the Act, in effect, stating that she had no relation with Tradenext and/or Kundu Group. The petitioner also stated that she had not claimed income exemption under Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the response of the petitioner and had passed the impugned order dated 21.10.2022 under Section 148A (d) of the Act. 10. The AO had also referred to a report that it had received from the investigation wing, which explained the modus operandi for bringing the undisclosed income in the books of accounts. In essence, the allegation is that certain assessees had paid an unaccounted cash for acquiring shares of traded listed companies, through an off market transaction through certain entry operators. The said shares were then sold through stock exchanges and Securities Transaction Tax (STT) was paid. In this manner, the assessees availed the benefit of the exemption under Section 10 (38) of the Act. 11. Insofar as the petitioner is concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... actions in listed shares, which would result in bogus long term capital gains. The report indicates that as many as twelve listed companies were identified, whose shares were used for structuring the accommodation entries. The report also included Annexure A, setting out the details of the beneficiaries and the names of the listed companies whose shares had been transferred in Demat Accounts of the beneficiaries. Annexure A to the said report is not produced but the extract, which pertains to the petitioner, has been filed along with an additional affidavit filed on behalf of the Revenue, which clearly indicates that the transaction in respect of 4800 (four thousand eight hundred) number of shares of Aurobindo, through Mridul Securities, wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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