2018 (6) TMI 1384

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....nt taken/recorded from stock broker Shri Ashok Kumar Kayan and used by the Revenue for denying the exemption claimed by the assessee u/s.10(38) of the Act. However, this statement as per the Ld.AR was never put to the assessee, nor the assessee given an opportunity to cross-examine the said person. As per the Ld.AR, the authorities lower had disbelieved the sale of shares made by the assessee through Shri Ashok Kumar Kayan based on his statement. As per the Ld.AR, the lower authorities erroneously considered the sale to be of penny stocks and round tripping thereby generating bogus Capital Gains which was claimed as exempt. Further, as per the Ld.AR, in a similar case in Smt.Anjana Jain v. ITO in ITA No.2606/Chny/2017, where also the very s....

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....i Ashok Kumar Kayan was not furnished to the assessee. It is also not known whether the purchase price of the shares was paid by cheque or by cash. The Assessing Officer observed that the assessee did not disclose the mode of payment of purchase price. In those circumstances, this Tribunal is of the considered opinion that the matter needs to be reconsidered by the Assessing Officer. Accordingly, the orders of both the authorities below are set aside and the entire issue raised by the assessee is remitted back to the file of the Assessing Officer. The Assessing Officer shall furnish a copy of the statement said to be recorded from Shri Ashok Kumar Kayan to the assessee. The assessee shall also disclose the mode of payment of purchase price ....

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....r share totaling into Rs. 3,00,000/-. The assessee claims to have paid cash for the purchase of these shares. The primary question would be as to where the purchase was done? If the purchase has been done in Kolkata, how was the cash transferred? When did the assessee received the share certificates and the share transfer forms? How did the assessee overcome the provisions of Sec.40A(3)? Was there adequate cash availability in the books of the assessee on 24.04.2008? Did the assessee travelled to Kolkata? How was the transaction done? Who applied for the demating of the shares? When were they demated? When were the shares transferred to the demat account of the assessee? To whom were the shares sold during the Assessment Years 2010-11 & 201....

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....ly to a specific query, as the date of the demat of shares, it was submitted by the Ld.AR that the demat was done on various dates. Then the question rises as to why there is so much of difference in the dates of demating when 15000 shares have been purchased together on 24.04.2008. No details in respect of M/s.BPL company is known, what is the product of the company which had lead to the share value of the company to go up from Rs. 20/- to Rs. 352/- in a period of two years. This would clearly be a case where the share value of the company was hitting the circuit breaker of the stock exchange on a daily basis and obviously it would have drawn attention. This being so, as the facts are not coming out of the Assessment Order nor the order of....