TaxTMI 
TaxTMI 
2015 (10) TMI 2299
X X X X Extracts X X X X
X X X X Extracts X X X X
....lant's contention that the material relied upon by the Assessing Officer was not given to the appellant for rebuttal. In light of above, your appellant prays for deletion of the aforesaid addition of Rs. 48,59,131/-. 4. Your appellant craves leave to alter, modify, amend or delete any of the above grounds of appeal, or to add one or more new ground(s), as may be necessary." 3. The only issue arises from the grounds of the assessee is regarding long-term capital gains (LTCG) of Rs. 47,82,952/- on account of sale of shares of M/s.Bolton Properties Ltd. ['BPL' for short] and claimed the same as exempt under section 10(38) of the income-tax Act,1961 ['the Act' for short]. In response to the query by the AO, assessee filed bill for purchase and sale of shares. The assessee claimed to have purchased shares on 11/4/2002 for a consideration of Rs. 51,500/- and the same were sold on various dates in the years 2007 and 2008 for a consideration of Rs. 48,59,131/-. The AO made reference to the intimation received from DDI, Calcutta vide letter dated 18/12/2007 in the case of Shri Amrutal H.Chithalia that the socalled capital gain arising on sale of shares of BPL is an arranged and ha....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d submitted that the assessee was holding these shares in its Demat account and also showing in the balance sheet since beginning therefore holding of these shares is not disputed and cannot be doubted, when the assessee is keeping these shares in the Demat account and also showing in the balance sheet since 2003 upto 2008. Learned authorized representative of the assessee has submitted that the transaction of purchase and claim of capital gain cannot be treated as bogus or sham when the assessee has produced all the relevant evidence including the purchase bill and contract note as well as Demat account. In support of his contention, he has relied upon the judgment of the Hon'ble jurisdictional High Court in the case of CIT vs Shankar Narayan (229 Taxman 256) and submitted that the Hon'ble High Court has held that when the purchase and sale of shares are reflected in the assessee's Demat account then the same cannot be treated as arranged transaction. The learned authorized representative of the assessee has pointed out that the AO has placed reliance on the information received from DDI in case of Shri Amrutal H.Chithalia whereas this Tribunal has already decided the issue in....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e of the assessee vide certificate dated 22/4/2002 issued by BPL. The said certificate is placed at pages 13 & 14 of the paper book. We further note that all these 15000 shares of BPL have been Dematerialized in the Demat A/c No.130208000004178 with Bank of India, Andheri (W) Branch. Thus, as per the Demat account statement, these 15,000 shares have been duly recorded on 23/5/2/2003. It is pertinent to note that when the shares in question are Dematerialized and recorded in Demat account of the assessee on 23/5/2003 then as on 23/5/2003 the fact of holding these shares by the assessee in its Demat account cannot be disputed. Once the shares are Dematerialised and are standing in the Demat account of the assessee since May 2003 till part of these shares to the extent of 12500 shares sold by the assessee in the year 2007 and 2008 the same remained in the Demat account of the assessee. We have gone through the summary statement of the Demat account of the assessee for each of these years from 2003 to 2008 and all these years these shares were shown in the Demat account of the assessee therefore holding of these shares by the assessee at least from the date of Dematerialsed cannot be d....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in its Demat account cannot be doubted. Further, the assessee has been showing these shares in the balance sheet right from the beginning which was not doubted by the AO till the shares were sold by the assessee. In the case of CIT vs. Shyam R.Pawar (229 Taxman 256), the Hon'ble High Court, while dealing with an identical issue, has observed in paragraph 5 as under: "5. We have perused the concurrent findings and on which heavy reliance is placed b Mr.Sureshkumar. While it is true that the Commissioner extensively referred to the correspondence and the contents of the report of the Investigation carried out in paras 20, 20.1, 20.2 and 21 of his order, what was important and vital for the purpose of the present case was whether the transactions in shares were genuine or sham and bogus. If the purchase and sale of shares are reflected in the Assessee's DMAT account, yet they are termed as arranged transactions and projected to be real, then, such conclusion which has been reached by the Commissioner and the Assessing Officer required a deeper scrutiny. It was also revealed during the course of inquiry by the Assessing Officer that the Calcutta Stock Exchange records showed that ....