TaxTMI 
TaxTMI 
2012 (8) TMI 1064
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....nce, the capital gains of Rs. 7,115,219 (50,095,894 -- 42,980,675) be taxed as short term capital gains. 3. The learned CIT (A) further erred in holding that the purchase value of the shares Smt. Hamida J. Rattonsey, sold be taken at the average of high and low price of the shares traded on the NSE and BSE on the date of dematerialization viz. Rs. 42,980,675 and treating the same as unexplained investment in the shares. 4. Without prejudice to above, the appellant has made investment in shares in earlier year which were duly reflected in the books of account of the appellant, hence the addition of Rs. 42,980,675 unexplained investment for the year under consideration may be deleted. 5.Without prejudice to above, the transaction of investment in shares being genuine and sufficient evidences were produced, the long term capital gains shown by the appellant as exempt under section 10(38) of the Income-tax Act, 1961 may be accepted and additions confirmed by the CIT(A) may be deleted. 6. The appellant craves leave to add, amend, alter or delete any one of the above grounds of appeal." 2. Assessee had filed her return of income on 29.12.2006 declar....
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....missions of the assessee and the assessment order he held Smt. Hamida J. Rattonsey, that the assessee was not entitled to claim exemption u/s. 10(38) of the Act, that the purchase of the shares can be considered only on the date of demetarialisation, that holding period of shares in the case of the assessee was less than 12 months, that capital gains amounting to Rs. 71,15,219 (5,00,95,894/- (-) 4,29,80,675/-) was to be taxed as short term capital gains, that purchase value of the shares sold should be taken at the average of high and low price of the shares traded on the NSE and BSE on the date of dematerialasation, that the purchase value was unexplained investment of the assessee, that the sale of share was genuine. 5. Before us, Authorised Representative (AR) submitted that in the case of the husband of the assessee on similar facts and circumstances 'J' Bench of ITAT, Mumbai has decided the issue in his favour (ITA No.5068/Mum/2009-AY 2006-07, dtd. 25.01.2012). He also relied upon the cases of Saumya Agarwal (174 Taxman 60), Anupam Kapur (299ITR 179) and Smt. Kusumlata (105TTJ 265). DR relied upon the orders of the AO and the FAA. After considering the rival submiss....
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....s short term capital gain since the assessee could not substantiate the purchases. Therefore, the question that has to be answered in the grounds raised by the assessee is as to whether the purchase of shares by the assessee are genuine or not and whether the holding period is more than 12 months or not. 9.2 We find the assessee before the A.O. has filed the copies of contract notes and purchase Smt. Hamida J. Rattonsey, bills of all the shares purchased from MSPL (copies of which are placed at paper book page 18 to 43). Similarly the bank statement maintained with HDFC bank shows evidence of payment to MSPL. The Xerox copy of the account payee cheque issued to MSPL dtd. 1.12.05 for Rs. 12,40.565/- is placed at paper book page 45 and was also filed before the A.O. and CIT(A). The copy of ledger A/c of MSPL ~n the books of the assessee and the copy of the ledger account of the assessée in books of MSPL were also filed before the A.O. Similarly the copies of contract notes and sale bills of all the shares transferred to Techno Shares & Stocks Ltd. Photocopy of D-Mat account and copy of confirmation letter dtd. 28.10.2005 Securities P. Ltd. were also filed before the A....
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....bove cheques have been received by me. Similarly reply given by Shrj Mukesh Choksi to Question No. 3 to 5 are as under: Q.3 Question put up by Shri Digant Bhat We have received the shares in Demat Account of - Shri Jafferalli K. Rattonsey and Hamida Rattonsey from Sunchan Securities Ltd., on your behalf, kindly confirm. Smt. Hamida J. Rattonsey, Ans. I have not given any instructions. Q.4 Question put up by Dr. Mahesh Akhade * In the statement recorded u/s.131 of the IT. Act on 24.12.2008, you have denied in the answer to Question No.8, 9, 12 & 13 that Mahasagar Securities Pvt. Ltd. and Alliance Intermediaries Network Pvt. Ltd. has no relationship to the assessees J.K. Rattonsey, Hamida Rattonsey, Sunay Mehta and Samit Mehta. You have also denied you have any share transactions with these persons. Kindly confirm the same. Ans. I am preparing accounts on receipt basis and the cheques received by me are accounted as a general receipts and on which the commission earned by me has been accounted fully. Here the shares have been delivered by Sunchan Securities, I have not given any instructions to Sunchan Securities. Q.No.5 Question ....