TaxTMI 
TaxTMI 
TaxTMI 
2016 (9) TMI 655
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....detailed investigation of their cases, it came to the notice of the department that the assessee was also one of the beneficiaries of purchasing of long term capital gain by obtaining bogus payment of purchase/sales of shares of Buniyad Chemicals. This transaction was carried out by the assessee from the address of 703, Sarovar Complex, B/h. Hotel Classic Gold, Nr. Jain Temple, Navrangpura, Ahmedabad, therefore, ITO, Ward-10(4) having territorial jurisdictional over the area recorded reasons for re-opening of the assessment and issued notice under section 148 of the Income Tax Act. In response to the notice, the assessee wrote a letter dated 26.4.2010 and pointed out that he has been filing return with ITO, Ward-7(3), Ahmedabad till A.Y.2009-10. It was also pleaded that the ITO, Ward-10(4) has no territorial jurisdiction and notice is bad in law. The ld.AO has considered objection of the assessee and rejected them. Record of the assessee was transmitted to the AO who has territorial jurisdiction over the assessee, i.e. where the assessee has been filing return, and ultimately, assessment order was passed by ITO, Ward-7(3), Ahmedabad on 27.12.2010 and addition of Rs. 3,99,070/- was ....
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....he reasons recorded by the AO is concerned, I do not find any substance in it, because, the AO has duly quantified the income in Column no.6 and this complete form is in accordance with law and part of the reasons recorded by the AO. It contained various details i.e. name and address of the assessee, PAN, status, assessment year and many other things. From the reasons, one has to find out whether the AO was possessing any information which could enable him to harbor a belief that the income has escaped assessment. On complete reading of the reasons, it is ascertainable that income has escaped assessment in the case of the assessee. As far as the objection with regard to territorial jurisdiction of the AO is concerned, I find that ITO, Ward-10(4) has recorded reasons, because, the transaction was carried out from address situated within his territorial jurisdiction. Moment, the assessee appraised him about his new address, jurisdiction to the AO having territorial jurisdiction over new address has been given. No prejudice is being caused to the assessee on the basis of this procedure. 7. In the next ground of the appeal, the grievance of the assessee that the ld.CIT(A) has erred in....
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.... are concerned, staff of companies prepared a list of scripts having seizable price difference over a period of time. When client approached the company for bogus delivery profit, they would feed bogus 'saudas' in their 'Leedha-Deedha' software by entering bogus dates, time, No. of order sharing purchase and sale of scripts in demat/physical lot. These transactions are not done through the stock exchange but the bill shown them to be so and appear to be genuine transactions done through the stock exchanges. The client gives cash against these profit bills. The cash is deposited in the subsidiary accounts like Talent infoway Ltd., Buniyad Chemical Ltd. etc and then funds are transferred to the bank account of the broking company issuing the bill (Mahasagar Securities Pvt. Ltd, Gold-star Finvest Pvt. Ltd etc). The cheque equivalent to the amount of profit is issued to the client from the account of the broking company like Mahasagar, Goldstar etc, thus enabling the client to generate profit. 10. The aforesaid facts have been duly confirmed by Shri Mukesh M Chokshi in his statement recorded u/s. 131 on 11/12/2009. In reply to question No. 7 of his statement that how....
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....eficiary. The benefit of the Long Term Capital Gain will be used in the next financial year i.e. F.Y. 2003-04 or later. Examples from Actual Bills of the assessee We look at the bill of Sudhir Jumani HUF, 703, Sarovar Complex, Navrangpura, Ahmedabad, he has sold 9000 shares of 'Buniyad Chemicals Limited'tCompany under liquidation Sr No 137 of list published by The Official Liquidator. Hon'ble High Court of Bombay CP No. 24 of 1993 date of winding up 09-07-1999) on 25-04-2002. As there are only sale transactions in his ledger for the year, he would have had a bogus bill generated showing purchase 12 months before this date, (a case of Long Term Capital Gain ). The purchase of these 9000 shares is reflected in his ledger for F.Y. 2001-02 on 17/04/2001. The purchase bill is a bogus one. The actual transfer of shares and payment of consideration (in cash) would have taken place a few days prior to date of sale i.e. 17/04/2002 i.e. in F.Y. 2002-03. The amount should thus be taxed in financial year 2002-03 relevant to Asst Year 2003-04. 11. From the above discussion, it is very clear that transactions of purchase/sale of shares entered into by beneficiaries throug....