TaxTMI 
TaxTMI 
2015 (3) TMI 879
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....arbitrary, perverse and based on no evidence and being legally unsustainable the same may please be deleted. 2. In the facts and circumstances of the case and in law, it may please be held that the appellant never concealed her income nor filed inaccurate particulars of her income as alleged by the learned Assessing Officer as well as the learned C.I.T.[A] and consequently the impugned penalty be deleted. 3. The appellant craves the permission to add, amend, modify, alter, revise, substitute, delete any or all grounds of appeal, if deemed necessary at the time of hearing of the appeal. 4. The assessee in ITA No.372/PN/2014 has raised the following grounds of appeal:- 1. In the facts and circumstances of the case and in law the learned C.I.T.[A] has grossly erred in confirming the decision of the learned Assessing Officer that the claim of the appellant assessee about Long Term Capital Gains of Rs. 49,18,824.00 on sale of shares of companies was a bogus and fraudulent claim. The said finding being arbitrary, perverse, devoid of merits and being bad in law the same may please be vacated and it may please be held that the impugned claim of the appellant assessee is genuine an....
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....assessment order u/s 143(3) r.w.s. 147 of the I.T. Act 1961 on 22/12/2008 in my case determined the net taxable income at Rs. 49,25,350.00 for the reasons as fully mentioned in the said order. 2. That the said reassessment order was challenged by me before the learned C.I.T.[A] II Pune by filing an appeal. 3. That the learned C.I.T.[A] vide his appellate order dt.19/07/2010 was pleased to dismiss my appeal for the reasons as fully mentioned in the impugned appellate order. 4. That all my tax and legal matters were looked after by my husband Late Shri Omprakash Mishrilal Bhandari who unfortunately expired due to sudden cardiac arrest on 26/12/2012 at Goa. In the circumstances I do not know the exact date on which the impugned order was received in our office. 5. After the sudden demise of my husband I had tremendous mental shock and it took about more than two years for me to recover from shock. 6. On or about 30/10/2013 I received the notice from the Registry of I.T.A.T. Pune intimating the date of hearing in ITA No.2008/PUN/2012 as 03/12/2013, in respect of the appeal filed by me against the penalty levied u/s 271[l][c] of the I.T. Act 1961 for the A.Y.2005-06. 7....
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....me. Reliance was placed on the following decisions vis-à-vis condonation of delay in furnishing appeal late:- i) N. Balakrishnan Vs. M. Krishnamurthy 1998 (9) TMI 602 - SC ii) Improvement Trust, Ludhiana Vs. Ujagar Singh & Ors., in Civil Appeal No.2395 of 2008, order dated 09.06.2010 iii) Shivshanti Constructions Pvt. Ltd., Vs. Dy.CIT in ITA No.1049/PN/2011, vide order dated 31.12.2012 Iv) Collector, Land Acquisition Vrs. Mst. Katiji And Others. 167 ITR 471 (SC) 8. The learned Departmental Representative for the Revenue on the other hand, pointed out that the appeal was dismissed by the CIT(A) on 19.07.2010 and her husband took a conscious decision in not filing any appeal against the said dismissal of appeal. It was further pointed out by the learned Departmental Representative for the Revenue that the order levying penalty under section 271(1)(c) of the Act was passed on 28.02.2011, against which the appeal was decided by the CIT(A) on 11.06.2011 and there was total compliance before the CIT(A). The date of death was 26.12.2012 and hence where the assessee has failed to furnish the reasons for the delay in furnishing the appeal, there was no merit in the con....
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.... litigation expenses. It would be a salutary guideline that when courts condone the delay due to laches on the part of the applicant, the court shall compensate the opposite party for his loss." 11. The Hon'ble Supreme Court in Improvement Trust, Ludhiana Vs. Ujagar Singh & Ors. (supra) held as under:- "2. After all, justice can be done only when the matter is fought on merits and in accordance with law rather than to dispose it of on such technicalities and that too at the threshold. Both sides had tried to argue the matter on merits but we refrain ourselves from touching the merits of the matter as that can best be done by the Executing Court which had denied an opportunity to the appellant to lead evidence and to prove the issues so formulated. 3. In our opinion, ends of justice would be met by setting aside the impugned orders and matter is remitted to the Executing Court to consider and dispose of appellant's objections filed under Order 21 Rule 90 of CPC on merits and in accordance with law, at an early date. It is pertinent to point out that unless malafides are writ large on the conduct of the party, generally as a normal rule, delay should be condoned. I....
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....e course of search operations carried out by the Investigation Wing, Pune in the offices and residential premises of several stock brokers and managers of finance companies, it was found that there were large scale manipulations in purchases and sale of some of the shares. The shares of the alleged companies were shown to have been purchased at the prevailing market rate of Rs. 1/- to 2/- per share to facilitate the concerned share purchaser to claim shares holding for more than 12 months, whereas in actual practice, there is no real purchase or sale of shares at all. Some of the brokers in the statements recorded before the authorities below had admitted that they had issued back dated bogus purchase bills in respect of shares of these companies in order to show the holding period to be more than 12 months. The main purpose behind the same was to introduce unaccounted funds into the books of account under the guise of long term capital gains. The Assessing Officer noted that the assessee had shown cost of purchase of 1,00,000 shares at Rs. 2,12,750/- which were purchased from the broker Sunil shares and Stock P. Ltd. The said shares purchased in physical form and copies of contrac....
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....apital gain and amount received on sale of shares, was added as income from other sources. 16. The CIT(A) upheld the order of Assessing Officer in view of the fact that the transactions from which long term capital gain was claimed to have arisen did not accord with human probabilities and hence, the income declared under the head capital gain was held to be non-genuine and the entire sale proceeds were to be assessed as undisclosed income. 17. The assessee is in appeal against the order of CIT(A) and it was pointed out by the learned Authorized Representative for the assessee that the shares were admittedly purchased in the month of June, 2003, against which no payment was made by the assessee since the broker owed money to the assessee. Our attention was drawn to the documents placed at pages 12 and 3 of Paper Book. It was further pointed out by the learned Authorized Representative for the assessee that the shares purchased by the assessee were converted into Jumbo Certificates which in turn were D-mated and our attention was drawn to the D-Mat statement placed at page 31 of the Paper Book. The learned Authorized Representative for the assessee pointed out that the additio....
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....act notes for the purchase of the said shares are also placed on record by the learned Authorized Representative for the assessee. Further, on 04.07.2003, the company had confirmed the receipt of transfer deeds along with share certificates to transfer the said shares in the name of the assessee. The assessee had sent three certificates i.e. the first certificate of 28,600 shares bearing distinctive numbers 1167401 to 1196000, 40500 shares with distinctive numbers 1717201 to 1757700 and 30,900 shares with distinctive numbers 4396001 to 4426900, totaling 1,00,000 shares to the company along with transfer deeds for transferring the said shares in the name of assessee. Copy of the said letter dated 04.07.2003 is placed at page 25 of the Paper Book. In exchange of the shares held by the assessee, Jumbo shares were issued by the said company on 16.02.2004 and the copy of the communication is placed at page 26 of the Paper Book. The copies of the Jumbo Certificates are placed at pages 27 to 29 of the Paper Book. The copy of D-Mat account dated 31.07.2004 evidencing the D-matting of 1,00,000 shares on 26.07.2004 is placed at page 30 of the Paper Book. The said shares were sold by the asse....
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....further find support from the ratio laid down by the Hon'ble Bombay High Court in CIT Vs. Shri Mukesh Ratilal Marolia in Income Tax Appeal No.456 of 2007, vide order dated 07.09.2011, wherein it was held as under:- "5. On further Appeal, the ITAT by the impugned order allowed the claim of the Assessee by recording that the purchase of shares during the year 1999-2000 and 2000-2001 were duly recorded in the books maintained by the Assessee. The ITAT has recorded a finding that the source of funds for acquisition of the shares was the agricultural income which was duly offered and assessed to tax in those Assessment Years. The Assessee has produced certificates from the aforesaid four companies to the effect that the shares were in-fact transferred to the name of the Assesses. In these circumstances, the decision of the ITAT in holding that the Assessee had purchased shares out of the funds duly disclosed by the Assessee cannot lie faulted. 6 Similarly, the sale of the said shares for Rs. 1,41,08,484/- through two Brokers namely, M/s Richmond Securities Pvt. Ltd. and M/s.Scorpio Management Consultants Pvt. Ltd. cannot be disputed, because the fact that the Assessee has received....