TaxTMI 
TaxTMI 
2018 (10) TMI 1430
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....e directors appeared before him. Aggrieved the assessee carried the matter in appeal. The ld. First Appellate Authority upheld the order of the AO. Further aggrieved the assesee is in appeal before us. 3. After hearing rival contentions, considering the papers on record and orders of the authorities below and case laws cited we hold as follows :- The assessee during the year sold its investments i.e. shares purchased by it in the earlier years and disclosed by it as its assts/investment in the Balance Sheet, to three companies. The details are as under :- S.No. Name Address PAN Total Amount 1. Kritmaan Tie Up Pvt. Ltd. P-22, Swallow Lane, Ground Floor, Kolkata-700001. AADCK7798K 10,00,000 2. Grade Suppliers Pvt. Ltd. 14/2, Old China Bazar Street, 2nd Floor, Room No.1391A, Kolkata-700001. AAECG0150E 32,50,000 3. Jhankar Dealers Pvt. Ltd. P-22, Swallow Lane, Ground Floor, Kolkata-700001. AACCJ2416N 20,00,000 Total 62,50,000 4. In response to the notice issued u/s 142(1) of the Act the assessee furnished the details of "sale of investments" to the AO. In response to the notice u/s 131 of the Act issued by the AO, to the purchasers compan....
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....sment Year 2003-04. iii) that when the assessee has sold the shares for Rs. 25,10,000/- undisputedly purchased by him in Assessment Year 2003-04, no adverse inference can be drawn against him. iv) that when purchased shares now sold by the assessee in Assessment Year 2003- 04 has been accepted in the preceding Assessment Year, the assessee cannot be put to such a situation to prove the source of buyer in the subsequent Assessment Year. Moreover, the seller can make sale of shares in cash u/s 40A(3) of the Act. v) that when assessee has shown an amount of Rs. 25,10,000/- as sale proceeds of shares as income, there is no ground for making the same as addition in the income which would amount to double addition. vi) that the books of account maintained by assessee have never been disputed by the A.O. nor he has held that the purchase of shares was bogus transaction or the shares sold by the assessee were bogus one. vii) In I.T.O. Vs Jatin Investment Pvt. Ltd. (supra), it is held that when the assessee purchased the shares in earlier year which were shown as investment in the books of account and reflected in the balance sheet then the assessee sold certain investments and ac....
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....interfere in the impugned order, the appeal of Revenue is hereby dismissed. 6. The Hon'ble Delhi Bench of the Tribunal in the case of ITO vs Jatin Investment Pvt. Ltd. In ITA No.4325 & 4326/Kol/2009 order dated 27.05.2015 held as follows :- "11. In his rival submissions, the Ld. Counsel for the assessee reiterated the submissions made before the authorities below and further submitted that the assessee was having investment in shares etc. which were duly shown on the asset aside of the balance sheet, out of those investments some were sold and few new were purchased and if there was any gain on the sale the same was offered for taxation. It was further submitted that in earlier year 13 4325 & 4326/ Del/2009 under similar circumstances, the case was reopened u/s 147 of the Act and the addition made by the AO was deleted by the I.T.A.T. It was further submitted that the assessee sold the shares which were earlier purchased in different years and duly shown in the balance sheet of the respective years and that the assessee had shown the sale proceeds in the books of accounts, the investments were reduced after making the sales. It was contended that there was no obligation under th....
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....10 upheld the order dated 30.7.2009 of the ITAT in ITA no. 1788/Del/2007 for the assessment year 2000-2001 wherein the order of the Ld. CIT(A) making the similar deletion was upheld by observing in para 6 as under :- "We are of the view that the assessee had produced copies of accounts, bills and contract notes issued by M/s. MKM Finsec Pvt. Ltd., and had been maintaining books of account as per Companies Act. The assessee had also demonstrated the purchase and sale of shares over a period of time as seen from the balance sheet's. In our opinion, the Assessing Officer has simply acted on the information received from the Investigation Wing without verifying the details furnished by the assessee. The assessee has also produced best possible evidence to support its claim. Consequently the addition made by the Assessing Officer cannot be sustained." 14. We, therefore, considering the totality of the facts do not see any valid ground to interfere with the findings of the Ld. CIT(A). Accordingly, we do not see any merit in this appeal of the department. In ITA no. 4326/Del./2009 of the assessment year 2004- 05 identical issue having similar facts is involved, the only differ....