TaxTMI 
TaxTMI 
2015 (6) TMI 796
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....pital gains and income from other sources. The AO has observed that there was AIR information pertaining to the share transactions aggregating to Rs. 3,08,78,420/- and expenditure incurred at hotel amounting to Rs. 4,06,018/- by the assessee during the year under consideration. The AO show caused the assessee to explain as to why keeping in view the large volumes of sale & purchases of shares the short term capital gains, claimed by the assessee, be not treated as business income. The assessee's reply has been reproduced in the assessment order, wherein he, inter alia, submitted that the assessee's intention was to hold the shares but the condition of the stock market was such that he liquidated his investment. The main contention of assess....
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..... The AO also issued summons u/s 131 to the principal officer of the said company and the reply filed by them has also been reproduced. 2.2. The reply received from TCG Stock Broking Ltd. has been reproduced at pages 6 & 7 of the assessment order. 2.3. From the aforementioned reply the AO observed that the shares had been bought by TCG Stock Broking Ltd. through the main broker to M/s Crimson Financial Services Ltd. on 30-8-2007. The contract notes had been issued by the broker in the name of TCG Stock Broking Ltd.. These shares were lying in the D-mat account of TCG Stock Broking Ltd. till 26-12-2007, on which date they were transferred to assessee's D-mat account and sold by him on the same day. The AO, therefore, was not convinced with....
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....e decision of Hon'ble Jurisdictional high Court in the case of CIT Vs. Rohit Anand 327 ITR 445, after taking into consideration the statement of Principal Officer of TCG Stock Broking Ltd. Mr. A.K. Garg, who categorically stated on oath that the assessee had purchased the said shares of M/s Lanco Infratech Ltd. on 30-08-2007 and the said shares remained in the D-mat account of M/s TCG Stock Broking Ltd. till 26-12-2007. He further observed as under: "Having recorded the statement of Shri A.K. Garg under oath and having collected all the material from M/s TCG Stock Broking Ltd. and M/s Crimson Financial services Ltd. u/s 133(6) of the Act, which went on to prove the contention of the appellant that he had purchased the said shares on 30-08-....
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....d however my company & Subhash Chand Gupta both have declaring with Crimsons Financial Services Ltd., which is the main broker of NSE? The payment for the shares purchased by Subhash Chand Gupta was received by us 4-09-2007 through transfer of the amount by journal entry from Crimsons Financial Services Ltd. 3.2. He further referred to question no. 14 and answer thereto, which is reproduced hereunder: Q. 14. Why weren't these 25000 shares of Lanco (ITL) bought in the name of Subhash Chand Gupta as was communicated and directed to you by him? Kindly give a detail explanation. Ans. 14. The shares were purchased by us in our code on behalf of and S.C.Gupta & delivered to Subhash Chand Gupta as per his instructions." 3.3. Ld. DR submitted th....
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....08-2007 and these were held by assessee for maximum number of days out of all the other transactions. In case of rest of shares, the sale took place from one day to one month 11 days. 4.2. Ld. counsel for the assessee referred to pages 37 and 38 of PB wherein statement of account from 1-4-2007 to 31-3-2008 of assessee in the books of M/s TCG Stock Broking Ltd., is contained, to demonstrate that on 30-08-2007 in assessee's account, M/s TCG Stock Broking Ltd., had purchased 25000 shares. Ld. counsel further referred to pages 47 to 71, wherein the assessee's account in the books of M/s Crimson Financial services Ltd. is contained to demonstrate that a sum of Rs. 74,83,706.44 was debited to assessee's account on the basis of Journal entry in t....
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....ted 26-8-2010, is contained, in which, inter alia, it is confirmed that 25000 shares of M/s Lanco Infratech Ltd. had been transferred to the D-mat A/c of Subhash Chand Gupta from M/s TCG Stock Broking Ltd. He, therefore, submitted that assessee had discharged the primary onus that lay upon him and, therefore, ld. CIT(A) rightly concluded that impugned shares were held by assessee as its investment and were taxable as short term capital gain on its transfer. 5. We have considered the rival contentions and have perused the entire material available on record. The evidence on record have been relied upon by assessee for establishing that the shares were purchased on 30-08-2007 by M/s TCG Stock Broking Ltd. on assessee's behalf, has not at all....