TaxTMI 
TaxTMI 
2012 (10) TMI 753
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.... has been casual and non-cooperative to the hearing of the appeals. This Tribunal has expressed serious displeasure on the conduct of the assessee during the arguments on 12.9.2006 when after hearing the ld Counsel for the assessee at length the Bench while hearing the learned DR; but suddenly the ld Counsel for the assessee forced the Bench to adjourn the hearing of these appeals sine-die. The learned counsel for the assessee wanted to file of a copy of board meeting of M/s Jindal Vijaynagbar Steel Ltd (JVSL) but till date nothing has been filed. All these show that the assessee is not serious about the hearing of these appeals; despite the fact that these appeals are classified as old appeals on board and always given preference in hearing. 3 In view of these facts and circumstances, we reject the adjournment request of the assessee and propose to hear and dispose of the appeals ex parte. 4 For the assessment year 2001-02, the assessee has raised the following grounds: "1 On the facts and in the circumstances of the case and in law, the learned CIT (Appeals) erred in confirming the findings of the learned Assessing Officer that the transaction of purchase of shares of Jindal V....
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....03. 6 The brief facts giving rise to the controversy are as under: The assessee claimed to have purchased shares worth Rs. 14 crores of JSVL during the year relevant to Assessment Year 2001-02. The Assessing Officer noted that the assessee received an advance of Rs. 14 crores on 16.10.2000 from another group concerned M/s Virindavan Services Pvt. Ltd. (VSPL) for supply of MS Slabs. The said advance received by the assessee was invested in the Shares of JVSL on the private placement at the rate of Rs. 10 per share. It was further noted by the Assessing Officer that initially JVSL gave advance of Rs. 14 crore on 16/10/2002 to VSPL for purchase of MS Slaps. On the same day, the VSPL gave the said money of Rs.. 14 crore to the assessee as an advance for purchase of MS Slabs and on the same day, the assessee purchased the shares worth Rs.. 14 crores of JVSL through private placement. 6.1 The Assessing Officer has also observed that the assessee was not engaged in the business of MS Slabs and there was no serious attempt to supply the goods contracted and ultimately no goods were supplied to VSPL. On these factual matrix, the Assessing Officer was of the view that the entire transacti....
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....price keeping in view the prevailing market price on the date of purchase. 8 For the assessment year 2002 - 03, the assessee sold these 1,40,00,000 shares of JVSL at Rs.7.25 per share and claimed long term capital loss of Rs.. 4,53,96,552/-. In view of the findings of CIT(A) for the assessment year 2001-02, the Assessing Officer adopted the purchase price of these shares at Rs.. 5.80 per share for the purpose of computing long term capital gain. Consequently, the Assessing Officer determined long term capital gain at Rs.. 1,63,00,000/- against long term capital loss claimed by the assessee. 8.1 On appeal the CIT(A) upheld the action of the Assessing Officer in adopting the purchase price at Rs.. 5.80 per share and determined the long term capital gain. 9 We have heard the learned D.R and carefully perused the relevant material on record. The ld DR has relied upon the orders of the Assessing Officer and CIT(A) and submitted that the facts and circumstances of the case clearly show that the transaction of receiving an advance of Rs.. 14 crore from a group concern VSPL and the said money was allegedly invested in the shares of JVSL on private placement is a sham and circular transa....
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....per share. The assessee has also not disputed this fact that the assessee is not in the business of supply of MS slabs rather the assessee has admitted this fact that the shares of JVSL were purchased on private placement basis in order to satisfy the conditions put by ICICI Ltd for financing the project that the promoters of the company also contribute to increase the share capital of the company and the assessee is one of the promoters of JVSL. The Assessing Officer has clearly brought on record and established that the said amount of Rs. 14 crore travelled from JVSL being advance given to VSPL and further given to the assessee being advance for supply of MS slabs which was used by the assessee for purchase of shares of JVSL. It is also undisputed fact that the assessee made no effort to supply MS slabs and the movement of money started from JVSL and finally reached to the same company rooted through VSPL and assessee. 10.1 For the assessment year 2000 2001, the Assessing Officer treated the said transaction as sham though, the same was revenue neutral for the said assessment year. However, for the assessment year 2001 - 02 when the assessee claimed to have sold these shares to ....