TaxTMI 
TaxTMI 
2013 (1) TMI 847
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....le of shares of M/s. B.T. Technet Ltd. and holding that the AO has not been able to prove that the share transactions were bogus and fictitious. 2. Briefly, the facts of the case are that the AO received information from Addl. DIT (Inv.), Agra to the effect that the assessee had received accommodation entries from M/s. CMS Securities Ltd. Delhi with objective to declare unaccounted income as income from long-term capital gain and accordingly, proceedings u/s. 147/148 of the IT Act and the AO in the assessment order held that the entire amount of Rs. 15,87,050/- received from sale of shares was treated as income from undisclosed sources and accordingly, addition was made u/s. 68 of the IT Act. The assessee declared receipt of an amount of....
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....n of similar nature of the same broker, but the ITAT, Agra Bench deleted the same in their cases vide order dated 31.03.2009 and long-term capital gains declared by them have been found to be genuine. It was further explained that none of these supporting evidences provided by the assessee were found to be wrong or incorrect. The assessee declared long term capital gains from the sale of shares which were allotted to the assessee directly and same were sold to the broker. The statements of Shri Mukesh Gupta and his wife who are the directors of M/s. CMS Securities Ltd. were recorded by DDIT (Inv.), which is not connected with the assessment proceedings and copies of the same have not been supplied to the assessee. The assessee is not awa....
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....ial on record and considering the large number of decisions in favor of the assessee of various High Court and the Tribunal found that the AO has not been able to prove that share transaction claimed to be entered into by the assessee were bogus or fictitious. The burden upon the assessee has been fully discharged regarding genuineness of the transaction of purchaser of shares and accordingly, entire addition was deleted and the appeal of the assessee was allowed. 3. The ld. DR relied upon the order of the AO and submitted that the bogus company provided accommodation entries to the assessee, source of which is not explained. The AO inspected the record of ROC, Delhi and found that the transaction between the assessee and the brok....
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....value of shares of B.T. Technet Ltd. at Rs. 114/- each share. He has submitted that the source of purchase of shares and source of sale consideration have not been disputed by the authorities below and in the cases of Rajesh Garg, Ram Prakash Garg, HUF and Seema Garg, the Tribunal deleted similar addition in respect of shares sold through the same broker. Copy of the order of the Tribunal dated 31.03.2009 is filed in the paper book and the said decision of the Tribunal has been confirmed by the Hon'ble Allahabad High Court in the case of CIT vs. Rajesh Kumar Garg in ITA No. 323 of 2009 vide order dated 15.02.2011 and copy of order of High Court is filed at page 29 of the paper book. He has contended that all the enquiries conducted at the b....
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....to the registered stock brokers and stock exchange. Brokers have confirmed that money was given through draft. Hon'ble Allahabad High Court, therefore, on consideration of these relevant considerations, confirmed the findings of the Tribunal that the sales are not sham transactions. According to the AO, the facts of these cases are identical to the case of the assessee, therefore, when in the identical cases of the family members of the assessee, additions have been deleted by the Tribunal and the order of the Tribunal have been confirmed by Allahabad High Court, therefore, on such reason itself, the departmental appeal is liable to be dismissed. Further, the assessee has filed proper evidences before the authorities below to show that shar....