TaxTMI 
TaxTMI 
2013 (5) TMI 987
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....d out on 10th March, 2010 at the residential as well as the business premises of the assessee. Consequently, notice under s. 153C r/w s. 153A was issued on 11th May, 2010 to the assessee. In response to this notice, the assessee filed return of income declaring an income of Rs. 59,930 on 21st June, 2011. Assessment was completed on 12th Dec., 2011 at a total income of Rs. 22,94,730. In doing so, the AO has made addition of Rs. 12,34,800 on account of reduction of the long-term capital gain. The AO observed that the assessee carried out share transactions along with family members and has claimed long-term capital gains to be exempt under s. 10(38) of the Act. 3. He also observed that the assessee-HUF has shown long-term capital gains on ....
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.... produced entire details of shares sold including the date of shares sold, number of shares, shares price per share and total consideration received was also furnished. The details of brokerage paid on sale of shares was stated to be included in the sale bill of the broker. The assessee also produced copy of relevant bank statement with the claim that s. 10(38) provided exemption in respect of any income arising from transfer of long equity shares in a company where such transaction is chargeable to security transaction tax. It was further submitted that sale transactions were subject to security transaction tax and tax was duly paid at the time of selling such shares and, therefore, all the conditions necessary for claiming exemption under....
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....ted information from Bombay Stock Exchange (BSE) and found that no such transaction took place. Copy of the BSE's letter was given to the assessee. Rather, the AO informed the assessee that as per BSE letter dt. 31st Oct., 2011, names and complete addresses of the persons who had purchased shares sold by the assessee and details of brokers through whom the assessee bought shares reflected that shares sold were purchased by one Shri Mukesh Chowksi through his entity M/s Alliance Intermediatories who was engaged in fraudulent billing activities and providing bogus speculated profit/loss, short term, long term capital gain loss, commodity profit/loss on commodity trading. In a search proceeding undertaken under s. 132 in the case of M/s Ma....
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....nt to his total income as his income from other sources. 6. During appellate proceedings, similar arguments were raised by the assessee and also filed another detailed written submissions and after considering the same, the learned CIT(A) confirmed the impugned addition. The assessee is further aggrieved and has filed this appeal by raising the following grounds: "1. The learned CIT(A) erred in law as well as on facts and circumstances of the case in holding that the AO has completed the impugned assessment order complying with the mandatory conditions of s. 153C of the Act. 2. The learned CIT(A) has erred in law as well as on facts and circumstances of the case in confirming the addition of undisclosed income of Rs. 22....
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....resentative Shri Amit Kothari has relied on various decisions enclosed in his paper-book including those of this very Jodhpur Bench and Third Member case of Agra Bench including decision of Hon'ble jurisdictional High Court. In this regard he has invited our attention to pp. 44, 51, 59 and 87 of his paper book. 9. Per contra, the learned Departmental Representative has heavily relied on the orders of the authorities below and has vehemently argued that the third party in whose case search was conducted has clearly admitted that they were providing entries against long-term capital gains inter alia. Accordingly, transactions done through them has to be treated as bogus. He has relied on the order of the AO, specifically para 6.14 at p....