TaxTMI 
TaxTMI 
TaxTMI 
2013 (7) TMI 844
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.... cash credit on account of sale of shares of M/s M.P. Investment and Quest Financial Services Ltd. without appreciating the fact that the transaction of sale of shares is not genuine but a arranged deal managed by the assessee. 3. On the facts and in the circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in deleting the addition of Rs. 97,417/- made by the Assessing Officer on account of undisclosed expenditure of 2% brokerage for arranging accommodation entries of sale of shares. 4. The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal. 3. The assessment in this case was conducted u/s. 153A read with section 143(3) of the I.T. Act, pursuant to search and seizure operation. The assessee had shown long term capital gain amounting to Rs. 48,70,250/- on sale of shares of Quest Financial Services Ltd. and M/s MP Investment Ltd, Kolkata. The total sale consideration of the shares sold was declared at Rs. 48,70,250/-. The case of the assessee earlier completed u/s. 143(3) of the I.T. Act by the ACIT, Central Circle, Agra. He treated the sale consideration of Rs. 48,70,250/- as accommodation ....
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....f Income Tax (A). This order of the Ld. Commissioner of Income Tax (A) was affirmed by the ITAT. In the impugned assessment u/s. 153A read with section 143(3) no new material has come on surface. Under the circumstances, the addition made in this regard cannot be sustained. Moreover, Assessing Officer has mentioned that he was making the addition as the concerned order of the Tribunal was not received by him. It has been admitted by both the parties that it is settled that Tribunal has made decision affirming the deletion of addition in this case. In the background of the aforesaid discussions and precedents, we do not find any infirmity in the order of the Ld. Commissioner of Income Tax (A), Accordingly, we uphold the same. I.T.A. NO. 3550 (A.Y. 2004-2004-05) - [ACIT VS. MITHOLESH KUMAR TRIPATHI] AND I.T.A. NO. 2307 (A.Y. 2004- 2004-05) - [MITHILESH KUMAR TRIPATHI VS. DCIT) 8. The issues raised in the Revenue's appeal read as under:- 1. The order of the Ld. Commissioner of Income Tax (A) is not correct and in law and facts. 2. On the fact and in the circumstances of the case, the Ld. Commissioner of Income Tax (A) has erred in deleting the addition of Rs. 22,40,730/- made by t....
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....s Nageshwar Investment Ltd. by treating it as accommodation entry and has further erred in making addition of Rs. 1,94,535/- on account of alleged commission paid, moreso when impugned issue stood decided in favor of the assessee by Tribunal in appeal against order u/s. 143(3). 4. That in any case and any view of the matter, action of Ld. Commissioner of Income Tax (A) in not reversing the action of Assessing Officer in making the addition and framing the impugned assessment order which is contrary to law and facts, void ab initio, beyond jurisdiction, and without giving adequate opportunity of hearing, by recording incorrect facts and findings and the same is not sustainable on various legal and factual grounds. 5. That having regard to the facts and circumstances of the case, Ld. Commissioner of Income Tax (A) has erred in law and on facts in not deleting the impugned addition made by Assessing Officer in the assessment order more so when no incriminating material has been found as a result of search warranting impugned addition. 6. That the appellant craves the lave to add, modify, amend or delete any of the grounds of appeal at the time of hearing and all the above grounds a....
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....the assessee by the ITAT and no further adverse material has been brought on record. 12. However, as regards on account of sale of shares of M/s Nageshwar Investment Ltd.., the Ld. Commissioner of Income Tax (A) observed that the same is different. Ld. Commissioner of Income Tax (A) observed that at the time of search, it was detected that books of accounts of M/s Nageshwar Investment Ltd. were maintained at the Administrative Office of the Raj Darbar Group and not at the Registered Office of the Company and this is one of the group Company. The assessee had shown sale of shares on the dates mentioned through the broker M/s Bubna Stock Broking Services Pvt. Ltd. That as per the details of trading transactions in this scrip provided by Kolkata Stock Exchange, no such transaction of sale of shares was executed on the dates mentioned on the contract note and sale bill issued by M/s Bubna Stock Broking Services Ltd. 13. Ld. Commissioner of Income Tax (A) further observed that after the search, in a post search enquiry, new facts have emerged which were not available when the first assessment was made and relief was subsequently allowed by the Ld. Commissioner of Income Tax (A) and IT....
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....on each is hereby deleted." 16. Against the above order the Revenue and Assessee are in cross appeals before us. 17. As regards the Revenue appeal is concerned, the issue involved is Addition of Rs. 22,40,730/- and Rs. 29,81,000/- on account of sale of shares of M/s MP Investment and Quest Financial Services Ltd. respectively and expenditure of Rs. 2,98,670/- for arranging these bogus entries. The above additions were duly deleted by the Ld. Commissioner of Income Tax (A) and affirmed by the ITAT in the proceedings u/s. 143(3) of the I.T. Act earlier. No new material has been brought forward to make these additions. Assessing Officer has simply referred that he has not received the order from the ITAT. Hence, he is making the above addition to the total income of the assessee, in view of the tax effect involved and the department may file appeal in the Hon'ble High court in this regard. Ld. Commissioner of Income Tax (A) has taken note of the Tribunal's order in this case, referred as above and deleted the addition in respect of Quest Financial Services Ltd. and MP Investment Ltd., Kolkata. Upon hearing both the counsel in this regard, we find that the issue should be taken as co....