2010 (2) TMI 1157

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....M/s Talent Infoway Ltd. 3. Brief facts of the case are that the assessee is an individual who filed his return of income declaring total income of Rs. 32,87,897/-. During the assessment proceedings u/s.143[3], AO observed that the assessee has credited Rs. 91,19,608/- as share profit in his capital account from the sale of shares of M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. and claimed long term capital gain on the sale proceeds. To verify the genuineness of the transaction notices u/s.133(6) of the Act were sent to the share brokers through whom assessee had carried on the said transactions. he observed that the assessee had sold shares of M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. through share brokers M/s Alliance....

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....mar Toshniwal were listed on the floor of ASEL and they were off market transactions. 4. As regards the payment of sale proceeds through Shri Ravindrakumar Toshniwal , he stated that they have been made through Akola Urban Co-operative Bank Ltd. out of the funds provided by Shri Ravindrakumar Toshniwal. AO also asked Mr. Mukesh Chokshi about the business transactions of M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. to which he replied that he was not aware of the business transactions and was not related to the said companies. 5. After considering the said statement of Shri Mukesh Chokshi, AO observed that the letter received from ASEL indicated that the contact person of M/s Buniyad Chemical Ltd. was Shri Mukesh M. Chokshi and fo....

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....se documents during the assessment proceedings. The assessee also submitted that the statement given by Shri Mukesh Chokshi that the payments have been made through Akola Urban Co-operative Bank Ltd. out of the funds provided by the appellant was also incorrect as the statement was without understanding the implications. The assessee stated that there is no supporting evidence to show that the funds were provided by the assessee through the broker before issuing the cheques against the sale proceeds. 7. As regards the validity of the off market share transactions, assessee placed reliance upon the decision of the Tribunal in the case of Mukesh R. Marolia vs. Addl. CIT reported in (2006) 6 SOT 247 (Mum). The assessee also challenged the fin....

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....453/M/08 dated 14/7/09. 11. Having heard both the parties and having considered their rival contentions, we find that the AO has treated the said transactions as bogus transactions on the ground thata) The sale transactions were not on the floor of the ASEL but were off market transactions; b) The address of the M/s Buniyad Chemical Ltd. and M/s Talent Infoway Ltd. was the same and the contact person for M/s Buniyad Chemical Ltd. on the floor of ASEL was Shri Mukesh Chokshi. c) Mr. Mukesh Chokshi had stated that the sale proceeds have been paid to the assessee through the funds provided by the assessee. 12. As regards point (a) above, we find that the issue is covered by the decision of the Tribunal in the case of Mukesh R. Maro....