TaxTMI 
TaxTMI 
2015 (11) TMI 1126
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....ital gain (LTCG) on the sale of shares. The appellant/s had on their part furnished all the relevant documents, i.e., toward establishing the validity of their claim, viz. the bills and contract notes for the purchase and sale of the relevant shares; De-mat account, through which the delivery of the shares stands effected; the bank account/s reflecting the receipt, etc. The Revenue, however, based on the deposition by one, Shri Mukesh Choksi, who and his companies, in the business of market intermediaries and dealers in securities, were subject to search on 25.11.2009, initiated proceedings, in all the cases, of which the present four are a part, where the LTCG had arisen on the basis of the transactions through his companies. Toward this, he would take the Bench to the relevant part of the impugned order in the case of Girish C. Jogani, stating the impugned orders to be the same in all cases, different only in the figures. No other material to impugn the assessee's reliance on the said documents has been brought on record by the Revenue. Why, even cross examination of the deponent, specifically asked for, was not provided, and toward which he would advert to the letter dated 02.12....
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....statements, being pursuant to a search action at the business premises of Sh. Mukesh Choksi and his companies, were not qua any specific assessee but specific to his business/es, covering all the persons transacting 'business' therewith. It is not the Revenue's case that only some specified transactions, as of the assessee, undertaken through the said company/s, are not genuine, but that the entire business as carried out through such hawala companies, is sham and bogus, only a make believe, being carried with a view to provide accommodation entries for a charge, even as admitted per the said depositions, and which is understood to be the substance thereof. The contention of the name being not specifically stated in the said statements, is thus of little consequence. In fact, the reassessment proceedings are not under challenge, so that the relevance of the materials with the Revenue, or the validity of the reasons recorded, is not in dispute. Again, as observed by the Bench, how could, even de hors the said statements, credence be given to the bills/contract notes, as furnished, when the registration of M/s. Alliance Intermediaries & Network Pvt. Ltd., a sub broker affiliated to ....
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.... bank accounts. Reference toward this, being information in the public domain, is made to the following cases, having been relied upon by the Revenue in another such case (Rinku Shah - in ITA No. 4311/Mum/2014 for A.Y. 2005-06): 1) M/s. Gold Star Finvest P. Ltd. (in ITA Nos. 4625/Mum/2005 & 5000/Mum/2005 dated 28.03.2008 for A.Y. 2002-03); 2) Richmond Securities P. Ltd. (Subsequently known as Mahasagar Securities P. Ltd. and now known as Alag Securities) (in ITA No. 4624/Mum/2005 dated 29.08.2008 for the A.Y. 2002-03) and M/s. Apha Chemie Trade Agencies Pvt. Ltd. (in ITA No. 4999/Mum/2005 dated 29.08.2008 for A.Y. 2002-03); 3) M/s. Mihir Agencies Pvt. Ltd. (in ITA No. 4912/Mum/2005 dated 30.05.2008); and 4) M/s. Alliance Intermediaries and Network P. Ltd., (assessment order u/s.143(3) dated 12.11.2008 for A.Y.2007-08/by ACIT(OSD-1), Central Range-7, Mumbai)). That is, the tribunal, the final fact finding authority, has itself found, as a fact, that these companies were engaged in the business of providing accommodation entries to various entry seekers, so that only the commission at the stipulated rate could be assessed as income in their hands. By necessary, nay, dire....
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....inue further. It is the satisfactory answer to all these and related questions that would determine if the transactions, as claimed, are proved, or not. And, thus, the applicability or otherwise of section 68 of the Act in the present case. Also relevant, would be the materials found during search in-as-much as they may indicate if the statements are corroborative and, further, if the modus operandi adopted, as explained therein, corroborates the facts and incidents of the case. The law in the matter is well settled, and toward which some binding decisions may be cited: CIT vs. Sri Meenakshi Mills Ltd. [1967] 63 ITR 609 (SC) Juggilal Kamlapat vs. CIT [1969] 73 ITR 702 (SC) CIT vs. Durga Prasad More [1971] 82 ITR 540 (SC) McDowell & Co. Ltd. vs. Commercial Tax Officer [1985] 154 ITR 148 (SC) Workmen, Associated Rubber Industry Ltd. vs. ARI Ltd. [1986] 157 ITR 77 (SC) CIT v. Akshay Textile Trading & Agencies (P.) Ltd. [2008] 304 ITR 401 (confirming that there was no departure from the principles/ratio of the decision in McDowell & Co. Ltd.(supra) in UOI v. Azadi Bachao Andolan [2003] 263 ITR 706 (SC)) Twinstar Holdings Ltd.v. Dy. CIT [2003] 260 ITR 6 (Bom) It ne....