TaxTMI 
TaxTMI 
2011 (12) TMI 597
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....ecorded his findings. It is therefore, useful to reproduce the para 3 to 8 of the ld.CIT(A)'s order as under:- ''The AO has observed that the assessee has shown long term capital gain from sale of 62500 Equity shares of Talent Infoways Ltd for Rs. 30,36,875 @ Rs. 48.25 to 48.75 per share against the purchase rate of Rs. 1.25 to Rs.l.40 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 Finvest P. Ltd to verify the genuineness 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 givin....
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.... Talent Infoways Ltd were not bogus but the transaction has taken place of market. Q. 4 : Please send the relevant portion of bank statement and books of accounts wherein the receipts of cash amounts and payments of cheuqes as well as entries recorded for purchase and 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 29.1 1.2007 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 14.12.2007. 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(....
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.... in reality the assessee has not earned any LTCG. But it has used to bring in the money to build up capital by paying taxes at lower rate. The AO, therefore, taxed Rs. 29,50,797 as unexplained cash credit u/s.68 of the Act. 4. Appellant case: During the course of 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 62500 equity-shares of Talent Infoways Ltd amounting to Rs. 30,36,875/-which were purchased in the year 2003 at a cost of Rs. 80,078/- and earned long term capital gains of Rs. 29,50,797/-. 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....
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....ate No 101913; Distinctive No. from 0004793501 to 0004794000 - 500 Shares. Further the appellant has sold 20,000 equity shares of M/s. Talent Infoways Ltd. for Rs. 9,75,000/- through Goldstar Finvest P. Ltd. (SEBI Regn. No. 230932431 ) vide contract note No.CC/2004/118/5(R) dated 22.06.2004, settlemenj^dated 22.06.2004 (a) Rs. 48.75; 20.000 equity shares of M/s Talent Infoways Ltd. for Rs. 9,55,000/- through Gold Finvest P. Ltd. (SEBI Regn.No. 230932431) vide contract No.CC/2004/120/5(R) dt 24.06.2004: settlement dated 24.06.2004jgLRs.48.25 per share; 22.500 equity shares of M/s Talent Infoways Ltd. For Rs. 10,96,875/- through Gold Finvest P. Ltd. (SEBI Regn. No. 230932431) vide contract No.CC/2004/122/12(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 F....
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....es. The AO in his order at page 6 required the assessee to furnish certain details. In response to this query, the assessee filed the reply vide letter dated 14th Dec. 2007. In this reply, the assessee explained the source of cash, person to whom cash paid, place of payment is not remembered, no mediator involved, copy of share certificates, copy of transfer deed being not kept, the receipt of annual report is remembered, copy of share certificate received after transfer in his name, copy of De-mat account and copy of bank account. From the perusal of the appellant's case as mentioned by the ld.CIT(A), it is clear that the assessee has not placed any additional evidence. Moreover, the onus was on the Revenue to have established before us the relevant additional evidences, if any, filed before the ld.CIT(A). The details from the evidences which were already produced before the AO cannot be considered as additional evidences. Hence, we do not feel that there is violation of Rule 46A. 3.4 We have also considered the fact that the assessee is having income from house property, income from other sources , long term capital gain and business income. The business income is interest and r....
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...., the commission so paid is liable to be taxed as undisclosed cash payment in the hands of the assessee. Commission on above accommodation entry of Rs. 12,07,895 amounting to Rs. 624 is added to the income of the assessee. " 4.2. Appellant's case That the Id AO while completing the assessment made additions amounting to Rs. 624 as commission would have been paid to share broker on surmises basis without any evidence, which is unjustified and bad in law due to the following facts. During the year under consideration the appellant sold 32000 Equity shares of Sacheta Metals Ltd amounting to Rs. 1,283,498 which were purchased in the year April, 2004 at a cost of Rs. 75,513 and earned long-term capital gains of Rs. 1,207,985. The aforesaid transaction were made through share broker only and during assessment proceedings appellant submitted the - - Contract notes - containing details of Service tax, Brokerage, Other levies; - Bills - containing Service tax, Transaction charges On perusal of the same your honour could appreciate that the broker has already stated the various charges made by them in there contract note and bills as already produced before the Id AO, I....