TaxTMI 
TaxTMI 
2016 (9) TMI 1319
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....ormation was received by the AO, assessee being one of the beneficiaries of Mahasagar Securities Ltd., (now Alag Securities Pvt. Ltd.,) group cases of share scam, from DDIT(Inv.), Mumbai vide letter dated 26/03/2010. Search and seizure action had revealed a scam wherein the said group of Mahasagar Securities Ltd. were found to be engaged in fraudulent billing activities and in the business of providing bogus speculation profit/loss, STCG/LTCG, commodity trading (through MCX) and having continuing this business for many years. In the said information supplied by the DDIT(Inv.) to the AO, the name of the assessee as one of the beneficiaries appeared, who had laundered their money by paying cash to the said group. 5. The AO observed that the ....
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....us operandi where the party first decides the amount of LTCG required by them following which the scrip was decided. The parties acquired the shares in DMAT Account out of their own fund and which then were sold in the open market. The group companies simply provided the bills of sale of purchase. 7. Under such facts and circumstances of the case, the AO arrived at that the total transaction of Rs. 1,14,93,377/- is to be treated as unexplained credit u/s. 69C under the head income from other sources and added the same to the total income of the assessee. Further the commission payable on such accommodation entries were estimated @5% of Rs. 1,14,93,377/- and addition on this account was made of Rs. 5,74,669/- u/s. 69C of the Act. 8. By the....
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....already offered by the assessee for tax purposes which amounts to Rs. 4,07,148/- for purchase of shares which was sold in the subsequent year and profit thereon was also declared in the next year and also assessed by the AO under Section 143(3) amounting to Rs. 70,27,062/-. Our attention was also invited to the computation of total income filed alongwith return of income for the Assessment Year 2006-2007 wherein under the head income from other sources assessee has offered income of Rs. 70,27,062/- Our attention was also invited to the assessment framed by the AO u/s. 153A read with Section143(3) of the I.T. Act dated 31/03/2015 for the assessment year 2006-2007 wherein AO has assessed income of Rs. 70,27,062/- on the head income from other....