TaxTMI 
TaxTMI 
2018 (3) TMI 1020
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.... Authority only on the basis of presumption and presuppositions, instead considering the documents/ information and explanation provided by the appellant. Assessing Officer failed to appreciate the fact of the case that the appellant made genuine sale and purchase of share and without correctly appreciating and understanding the transaction has made addition of Rs. 18,46,600/- in the income of the appellant. 3. That the appellant has earn Long Term Capital Gain amounting to Rs. 18,46,600/- during the financial year 2013-14 which is exempt under Section 10(38) of Income Tax Act, 1961. That the appellant had purchased of 45,000/- shares of Unisys Software Holding Industries Ltd amounting Rs. 9,38,600/- at a premium of Rs. 20.85 per share in physical form. Out of the aforesaid 45000/- Shares appellant sold of 8000 Shares only i.e. 17.77%. Thus, the major part of the Shares i.e. 82.33% are still in the hand of the appellant. Point to be noted is that the appellant just wanted to enter into the transaction to earn exempted capital gain, why the appellant did not sell all the share 45000 shares instead of sale of a part i.e. 8000 shares only when that time was the best price eve....
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....and/or to adduce and rely upon such further evidence and /or to adduce and rely upon such further evidence and /or documents as may be required at any time before and during the time of hearing. 2. The brief facts of the case are that assessee filed her return of income for the assessment year 2014-15 on 30.9.2014 declaring income at Rs. 3,67,580/-. The case of the assessee was processed u/s. 143(1) of the Income Tax Act, 1961 (hereinafter referred as the Act) and was taken for scrutiny. Notice u/s. 143(2) dated 18.9.2015 was issued. Thereafter, statutory notice u/s. 142(1) of the Act alongwith questionnaire was issued on 05.2.2016. In response to the said notices, the AR of the assessee attended the proceedings. The assessee is an individual and during the relevant year, she has shown income " income from house property, income from business and profession and income from others sources". AO observed that assessee has shown long term capital gain of Rs. 18,46,600/- from sale of shares and claimed the same as exempted u/s. 10(38) of the Act. amounting to Rs. 18,46,600/- from sale of shares and Short Term Capital Gains on Sale of Shares. The AO has made the addition on account of....
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....ame in the financial year 2013-14 resulting in Long Term Capital Gain. It was further stated that assessee before the lower authorities have submitted the following documents/ evidence to prove the genuineness of the transaction of sale and purchase of shares at the time of hearing (i) A copy of purchase bill dated 22.02.2010. (ii) A copy of share transfer form in the favour of the assessee. (iii) Copy of bank statement highlighting the payment made against the share purchased. (iv) Transaction statement of the stock broker i.e. Pace Stock Broking Services (P) Ltd., account. (v) Copy of bank statement in which sale proceed from the sale of shares received. (vi) Copy of calculation of long term capital gain 4.1 It was further stated that AO has not considered the aforesaid documents because the investigation was done against the stock broking entities, the assessee cannot be said to have entered into bogus transaction insofar as the assessee is not concerned with the activity of broker and has no control over the same. It was the further contention that a small amount invested in "penny" stocks gave rise to huge capital gains ....
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.... Shantidevi Bimalchand Jain vs. PCIT - Hon'ble Mumbai High Court ITA No. 18/2017. - Chandan Gutpa vs. CIT - Hon'ble Punjab & Haryana High Court (2015 54 taxmann.com 10 (P&H)/ (2015) 229 Taxman 173. - Balbir Chand Maini vs. CIT - Hon'ble Punjab and Haryana High Court (2011) 12 taxmann.com 276 - Usha Chandresh Shah vs. ITO, ITAT Mumbai 2014-TIOL-1459-ITAT-MUM. - Ratnakar M Pujari vs. ITO, ITAT Mumbai 2016-TIOL-1746-ITAT-Mum. 6. I have heard both the parties and perused the relevant records available with me, especially the orders of the revenue authorities and the case law cited by both the parties. I note that assessee has earned Long Term Capital Gain amounting to Rs. 18,46,600/- during the financial year 2013-14 and the same has been claimed exempt under Section 10(38) of Income Tax Act, 1961. The assessee had purchased of 45,000/- shares of Unisys Software Holding Industries Ltd amounting Rs. 9,38,600/- at a premium of Rs. 20.85 per share in physical form. Out of the aforesaid 45000/- Shares assessee sold of 8000 Shares only i.e. 17.77%. Thus, the major part of the Shares i.e. 82.33% are still in the hand of the assessee. In my view the the ....
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....cumstances, hence, the said case laws are not applicable in the present case. However, in my considered opinion, the issue in dispute is squarely covered by the various decisions of the ITAT and the Hon'ble High Courts including the recent decision dated 18.1.2018 of the Hon'ble High Court i.e. Hon'ble High Court of Punjab & Haryana in the case of PCIT (Central), Ludhiana vs. Prem Pal Gandhi passed in ITA No. 95 of 2017. Decision dated 18.1.2018 of the Hon'ble High Court of Punjab & Haryana in the case of PCIT (Central), Ludhiana vs. Prem Pal Gandhi passed in ITA No. 95 of 2017 wherein it has been held as under:- "2. The following questions of law have been raised:- (i) Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal has erred in upholding the order of the CIT(A) deleting the addition of Rs. 4,11,77,474/- made by the AO on account of sham share transactions ignoring an important aspect that the transaction of shares showing their purchase price at Rs. 11,00,000/- and sale consideration at Rs. 4,23,45,295/- within a period of less than two years / purchases of shares made in cash not cheque that too befo....