2018 (11) TMI 1491

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....tal gain on sale of shares by treating the same as unexplained credit entries. 2. The order passed by the Ld.CIT(A) is bad in law, since the Ld.CIT(A) has erred in confirming the addition made by the AO - a) By treating the purchase & sale of shares as sham and bogus, totally ignoring the reliable and credible evidence submitted by the appellant (including merger order issued by Bombay High Court); b) By ignoring all favourable judicial precedents cited by the appellant is irrelevant merely by remarking that the Hon'ble Courts/Tribunals have passed those judgments without being aware of the entirety of circumstances; c) On the basis of unrelated third party statements without providing the appellant a copy of the statements and the ....

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.... of script Sale price (Rs.) Purchase price (indexed) (Rs.) Gain (exempt) (Rs.) Unno Industries 1,48,83, 544/- 9,51, 188/- 1,39,32, 356/- 5. Ld.AO on examination of shares sale transaction, found that entire sale proceeds was received from sale of two scripts M/s Unno Industries (earlier named Basukinath Real Estate Ltd, when shares were purchased) and Maruti Udyog. 5.1 Assessee was called upon to give details regarding manner in which shares were purchased and documents in support. Assessee submitted that assessee purchased 2500 shares of M/s Basukinath Real Estate Ltd., in financial year 2011-12, through M/s Sharewood Furniture Pvt. Ltd., for an amount of Rs. 5 Lacs. It was submitted that Basukinath Real Estate Ltd., declared bon....

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....nno Industries. 6.2 He, thus, made an addition on basis of test of human probabilities to an extent of Rs. 1,39,32,231/-. 7. Aggrieved by order of Ld. AO assessee preferred appeal before Ld. CIT (A), who upheld action of Ld. AO. Aggrieved by order of Ld. CIT (A) assessee is in appeal before us now. 8. Main issue alleged by Ld. AR before us is in respect of denial of opportunity to cross examine persons whose statements have been basis for addition in hands of assessee. 9. Ld. AR submitted that Assessing Officer passed in violation of principles of Natural Justice. He submitted that copies of statement by Sh. Amit Dalmia and Sh. Narendra Kumar Jain recorded by investigating wing was not provided to assessee. He submitted that on merits, ....

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....hese persons, before First Appellate Authority, same was not granted. Assessee has contested truthfulness of statements given by Sh. Amit Dalmia and Sh. Narendra Kumar Jain before us. 12.1 It is pertinent to note that assessee, vide letter dated 21/12/16 had asked Ld. AO to provide material based upon which various allegations have been levied by Ld. AO. These factors from para 20 of assessment order, wherein assessee raised objections, one of which is opportunity to cross examine, in case of any evidence used against assessee. 12.3 To our surprise, Ld. AO without providing any material evidence, report on which he was relying and not granting an opportunity to cross examine the persons on whose statement he arrived at certain presupposit....