TaxTMI 
TaxTMI 
2016 (8) TMI 1304
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....f the notice issued u/s. 148 and the order passed in pursuance to the u/s. 143(3) r.w.s. 147 and while doing so he amongst others faded to appreciate: a. That there was no income chargeable to tax which had escaped assessment; b. That the reasons stated for reopening of assessment were not having any relation to the facts on record for the relevant previous year; c. That merely on the deposition of Shri Mukesh Choksi on 25.11.2009, no adverse inference could be drawn against the appellant. 2. The learned Commissioner of Income Tax (Appeals) failed to appreciate that the addition of the consideration paid for purchase of shares was wrongly made under the head 'income from undisclosed sources' in so....
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....assessee submitted bank statement, demat statement, broker's bill pertaining to transactions of purchase and sale of shares. However, the Assessing Officer did not find merit in the submissions of the assessee. Relying upon the statement recorded from Shri Mukesh Choksi, under section 131 of the Act, on 11th December 2009, the Assessing Officer ultimately concluded that the share transaction is bogus and the assessee has merely taken the entries of share transaction from the broker company for converting unaccounted funds to accounted funds in the guise of short term capital gain. Thus, he treated the short term capital gain shown by the assessee as income from other sources. The Assessing Officer also treated the purchase value of shares a....
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....all relevant and necessary documentary evidence to prove the genuineness of share transactions. Whereas, the Assessing Officer without bringing any material on record to disprove the claim of the assessee and solely relying upon the statement of a third party, that too, without confronting to the assessee has made the addition as income from other sources. He submitted, when the assessee has entered into the share transaction in regular course, the same cannot be treated as sham / bogus by relying upon some untested / unverified material collected from third parties. He, therefore, submitted the addition made should be deleted. In support of his contention, learned Authorised Representative relied upon the following decisions:- i) ....
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.... to purchase and sale of shares, bank statement copies reflecting share transactions before the Assessing Officer. As against the aforesaid documentary evidence submitted by the assessee to prove the share transactions, the Assessing Officer has treated the share transaction as sham / bogus by solely relying upon the statement of Shri Mukesh Choksi, director of Mahasagar Securities Pvt. Ltd. and Alliance Intermediaries Network Pvt. Ltd., wherein he allegedly admitted of having provided accommodation entries only and there was no share transaction actually made. Apart from the statement of Shri Mukesh Choksi, the Assessing Officer has not referred to any other material or evidence which could corroborate or conclusively prove the facts state....