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TMI Blog2025 (2) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... the Ld. Income-tax Officer, Ward-17(2)(4), Mumbai(in short, 'the A.O.') passed under section 143(3) of the Act, date of order 27/12/2016. 2. The assessee has taken the following grounds of appeal:- "1. In the facts and circumstances of the case and in Law the learned CIT(A) erred in not making a conclusive decision while directing the Assessing Officer to treat the profit from sale of shares of SRK Industries Ltd under the head income from business in case it is held that the provisions of sec.68 are not applicable. 2. In the facts and circumstances of the case and in law the learned CIT(A) erred ignoring the basic facts in the written submissions made before him and without bringing any material on record to show that the transaction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8) of the Act. The Ld.AO treated the sale consideration of the LTCG as bogus on ground that said company does not deserve such a huge hike of sale price. Accordingly, he disbelieved the market price. The entire sale was made through Bombay Stock Exchange (BSE) and the purchase and sale transaction was made through banking channel as also that the shares are delivered in the demat during the purchase and sale. The assessee has completed this transaction through the broker, M/s Religare Securities Ltd. An investigation was conducted by the Director of Investigation, Kolkata and the cash trail was duly verified and during the course of search and survey actions, the investigation Wing of Kolkata has also covered the regional office of M/s Reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... channel. The details of transactions, contract note, demat account, bank statements were duly submitted before the revenue authorities which were also annexed in the paper book of the assessee which is reproduced as below: - 1. Capital Gain Working for the FY 2013-14 1-2 2. Copy of Purchase Invoice of eq.shares of Transcend Commerce Limited 3 3. Copy of Bank Statement reflecting payment of purchase price of shares 4-5 4. Holding statement as on 31.03.2013 reflecting Eq.shares of Transcend Commerce Limited 6-11 5. Copy of BSE announcements in case of amalgamation of Transcend Commerce Limited 12 6. Holding statement as on 08.07.2013 reflecting Eq.share of S.R.K. Industries Ltd. 13-14 7. Copy of letter for intimation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8,786.05 4 11.12.13 Ashapura Mine 200 62.60 12,520.00 44.52 12,475.48 4.5.2005 15,400.00 (2,924.52) 5 11.12.13 Dena Bank 50 55.45 2,772.50 40.23 2,732.27 7.4.2006 3,050.00 (3,174.43) 6 11.12.13 Hindustan Motor 250 7.70 1,925.00 14.43 1,910.57 10.6.2008 5,625.00 (3714.43) 7 11.12.13 J K Lakshmi Cement 12 77.20 926.40 3.21 923.19 4.12.2003 1,008.00 (84.81) 8. 11.12.13 JSW Steel 4 941.00 3764.00 13.16 3,750.84 3.10.2004 12,005.00 (8,254.16) 9. 11.12.13 Mirc Electronics 1000 5.60 5,600.00 55.60 5,544.40 17.6.2006 34,000.00 (28,455.60) 10. 11.12.13 Persistern System 20 880.80 17,616.00 61,62 17,554.3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gregate consideration of Rs. 38,45,045/- and the sale consideration was also received through banking channels. He submitted that the assessee has furnished all the required documents to prove the factum of purchase and sale of shares. He submitted that the AO did not find any deficiency/defect in the documents so furnished by the assessee. He submitted that the assessee is an ordinary investor in shares and it was not shown that the assessee was a part of the group, which was involved in the alleged prices rigging of the shares. Accordingly, he submitted that the tax authorities are not justified in disbelieving the transactions of shares carried on by the assessee. In support of his submission, he placed reliance on various case laws." 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and considered the documents available in the record. We find that the assessee has submitted all the relevant documents related to the transactions of LTCG. The entire transaction of sale was through BSE and the payment was received through banking channel. We notice that the investigation report prepared by the Investigation Wing, Kolkata is a disclosed report with modus adopted for manipulation of prices of certain shares and generation of bogus capital gains. We note that the Ld.AO has placed reliance on the said report without bringing any material on record to show that the transactions entered into by the assessee were found to be a bogus and manipulated transaction. It was not proved that the assessee has carried out this transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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