TaxTMI 
TaxTMI 
2016 (9) TMI 801
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....he grounds raised by the Revenue read as under:- i. The ld. CIT(A) has erred in law and on facts in deleting the addition made by the assessing officer u/s 69 of the Act of Rs. 45,51,396/-. ii. The ld. CIT(A) has erred in law and on facts in accepting the contention of the assessee that sale of shares was genuine, which was substantiated by bogus documents. 3. Brief facts are - the Assessing Officer received information from DIT to the effect that the assessee had entered into fraudulent billing activities with one M/s. Mahasagar Securities Ltd and its related group of companies. M/s. Mahasagar Securities Ltd group was actively engaged in providing bogus short term and long term capital gains, share application money, profit/loss o....
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....nd looking in to the facts of the case, it is observed that merely because entire transactions have been recorded in the books of account applicability of section 69 cannot be ruled out. The above transactions of purchase and sale of is a mere accommodation purpose and there is no genuineness in the transaction as per the facts emanated and explained above in this case. When the source and nature of investment is a fraudulent in nature and there is no genuineness and also the persons with whom these transactions were entered has agreed that these were bogus transactions and were accommodation in nature. Therefore entire amount of Rs. 45,51,396/- is assessed under unexplained investment as per 69 of the IT Act. 4. Aggrieved, the assessee ....
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....STCG transactions are having short life. The arranged transactions are completed in the shortest possible time. In case of arranged STCG transactions are generally completed within a matter of months and in the case of arranged LTCG transactions are completed within a span of 12 to 15 months. Organized transactions cannot have life span of 10 years. In the organized LTCG transactions, bonus shares are generally not received. In the organized transactions all evidences, which is available on record cannot be managed. In view of these facts, I am of the considered view that transactions vide which LTCG of Rs. 35,61,396/- had accrued to the appellant are genuine transactions and these cannot be stated as managed transactions." 6. Aggrieved,....
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....t of statutory obligation enshrined in the Income-tax Act. Besides, assessee himself before the ld. CIT(A) had raised following ground:- The learned AO has also grievously erred in not furnishing the copy of material on the basis of which the reassessment has been framed and also in not granting an opportunity of cross-examination of the person whose statement has been relied upon. The impugned order thus having been passed in gross violation of the principles of natural justice and equity requires to be quashed as invalid and void-ab-initio. With this ground before the ld. CIT(A), it was desirable that the requested opportunity of cross-examination of the Director of M/s. Mahasagar Securities Ltd group, as mentioned in assessment ord....