TaxTMI 
TaxTMI 
2012 (1) TMI 220
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....5 to 48.75 per share against the purchase rate of Rs. 1.15 to Rs. 1.45 per share. The transaction was effected through a broker located at Mumbai namely M/s. Goldstar Finvest P. Ltd Considering the fact that the company is not very well known and such a huge rise in the price in such a short span of time is very unlikely and more so keeping in view unearthing of rackets providing entries in the form of long term capital gain, the issue was investigated by the AO in detail. Further a letter was sent to the broker M/s Goldstar FinvestP.Ltd toverifythegenuineness of the transaction on 17.09.2007 which was returned with the postal remarks 'left'. In the meantime it was gathered that a survey u/s 133A of the IT Act by Investigation Wing,Mumbai was conducted on 28.06.2006, in the case of M/s Mahasagar Securities P Ltd in which Sh Mukesh M Choksi is a Director. The survey revealed that Shri Mukesh M Choksi was giving 'accommodation entries', business loss, etc as per requirement of his customers against receipt of equivalent amount of cash and his commission. Shri Mukesh M Choksi issued cheques in the names of beneficiaries from the Bank a/c of various concerned floated....
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....d sales as shown to have been made for above shares, i.e., Talent Infoways Ltd, are duly reflected. Ans: Since I am issuing the accommodation bills to various parties it is difficult for me to identity the funds received by me specifically vis-a-vis parties and it is also not possible to link corresponding entries vis-a-vis purchase and sales of shares. Hence it is not possible for me to give any bank statement and books of accounts of relevant transactions. Therefore the assessee vide this office letter No 1811 dated 29.11.2007 was issued a detailed show cause requiring the assessee to file reply/explanation on 07.12.2007. In that response a detailed reply was submitted by assessee on 7.12.2007. From the detailed discussion above, it is clear that the assessee has failed to prove the genuineness of the transaction on the other hand from the Investigation carried out by Investigation wing, Mumbai and u/s 131(d) by this office, it is revealed that assessee is one of the beneficiaries of Shri Mukesh M Choksi and the concerns floated by him. The assessee has failed to controvert the findings of the Investigations done by the Department in his specific case. All the above goes on....
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....f appellate proceedings, the Id. AR submitted that appellant furnished various details asked for. The AO has accepted the facts that the appellant furnished various details which were asked for and also accepted that filed written submission and furnished copies of bank account. During the year under consideration, the appellant sold 31500 equity shares of Talent Infoways Ltd amounting to Rs.l5,29,841/-which were purchased in the year 2003 at a cost of Rs. 43,886/- and earned long term capital gains of Rs. 14,85,975/-. The appellant purchased shares out of capital balance. To support it, the appellant submitted copy of capital account as appearing in audited balance sheet of the firm before the AO. He further submitted that appellant submitted details in the form of contract note, bill and receipts of payment in respect of purchase of shares, correspondence with broker for transfer of share certificate, contract note and bill of broker in respect of sale of shares. All transactions were made through banking channel only and the same has been accepted by the AO. The appellant while filing return of income opted for taxability of LTCG on shares without indexation u/s. 112 and paid in....
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....4(R) dated 22.06.2004, settlement dated 22.06.2004 @ Rs. 48.75; 10,000 equity shares of M/s Talent Infoways Ltd. for Rs. 4,82,500/- through Gold Finvest P. Ltd. (SEBI Regn.No. 230932431) vide contract No.CC/2004/120/4(R) dt 24.06.2004; settlement dated 24.06.2004 @ Rs. 48.25 per share; 11,500 equity shares of M/s Talent Infoways Ltd. for Rs. 5,60,625- through Gold Finvest P. Ltd. (SEBI Regn. No. 230932431) vide contract No.CC/2004/122/ll(R) dt 28.06.2004; settlement dated 28.06.2004 @ Rs. 48.75 per share. The copy of contract note has also been furnished which is placed on record. This contract note bears the SEBI Regn. No.230932431. The copy of the contract note was also furnished to the AO at the time of assessment proceedings. If the letter issued u/s. 133(6) of the Act, returned back unclaimed, the AO could have made inquiry from SEBI and come to conclusion. Treating the sale through broker M/s. Goldstar Finvest P. Ltd. as bogus does not hold good as the appellant has received the sale proceeds through account payee cheque. The appellant paid the purchase consideration in cash by withdrawing the same from the capital account of the appellant. Therefore, this cannot be a reason ....
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....irmed. Thus Ground No. 1 of the revenue is dismissed. 3.1 The second issue of the revenue is that the ld. CIT(A) has erred in deleting the addition of Rs. 2,250/- as undisclosed commission payment. 3.2 The ld.CIT(A) in para 8 and 9 of his order has referred to this issue and these paragraphs are reproduced as under:- ''8. The AR has contended that the AO has entirely based the assessment order on assumptions, surmises and imagination applying illogical arguments whereas he has not tried to look into the facts submitted by the appellant to prove into the reality of the facts. The AR also stated that the AO has failed to bring any material evidence on record in support of the estimation. Further, it has been stated that the sale proceed received by the appellant is net of bills received from the broker. From the bills, it is evident that the commission of broker has already been deducted by the broker and net amount is paid to the appellant. Decision: 9. I have considered the facts of the case and submission of the Id. AR and found that the AO has made the addition of Rs. 2,250 /- on the ground that commission payment for purchase and sale of shares has not been shown in th....