2019 (1) TMI 1216

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....A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER For the Appellant : Shri N. Vijay Kumar, CA For the Respondent : Shri S. Nataraja, JCIT ORDER Per BENCH:- These appeals by the assessees are directed against the orders passed by the learned Commissioner of Income Tax (Appeals)-12, Chennai as detailed herein below for the assessment year 2014-15 passed U/s.250(6) r.w.s.143(3) of the Act :- Appeal No. Assessee Order of the Ld.CIT(A)-12, Chennai No. Dated ITA 1413 of 2018 M/s. Pankaj Agarwal & Sons (HUF) ITA No.192/CIT(A)- 12/2016-17 23.02.2018 ITA 1414 of 2018 Smt. Mamta Agarwal ITA No.185/CIT(A)- 12/2016-17 01.03.2018 ITA 1415 of 2018 M/s. Rajnish Agarwal & Sons (HUF) ITA No.191/CIT(A)- 12/2....

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....e in the return of income while computing the income of the assessee. (iii) The Ld.AO had erroneously computed the aggregate value of the sale of shares of M/s. SRK Industries Ltd., as follows while computing the Long Term Capital Gain: Assessee / Appeal No. Actual value of the shares sold Erroneous value adopted by the Ld.AO Smt. Sampati Agarwal ITA No.1418/Chny/2018 Rs.63,46,801 Rs.64,71,191 Shri Rajnish Agarwal ITA No.1419/Chny/2018 Rs.63,80,898 Rs.66,77,520 Shri Pankaj Agarwal ITA No.1420/Chny/2018 Rs.62,97,298 Rs.63,93,70 (iv) In the case of Rajnish Agarwal in ITA No.1419/Chny/2018 the assessee has raised the ground that the Ld.CIT(A) has erred in confirming the order of the Ld.AO w....

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....d could take the benefit of Section 10(38) of the Act. (iv) For facilitating such bogus entries, the brokers were paid commission in cash generally around 6% of the value of the transaction or Rs. 0.50 to Rs. 1/- for every Rs. 100/- transacted. (v) But for the price rigging and manipulative actions of the brokers the assessee would not have earned such Long Term Capital Gain. (vi) The motive of the price manipulation is only to bring out their black money as legitimately earned Long Term Capital Gain for which exemption U/s.10(38) of the Act is available. 5. The Ld.AO further relied on the following decisions while deciding the cases against the assessees:- (i) The Hon'ble Apex Court in the case Sumath....

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....d further failed to furnish the investigation report of the intelligence wing of the Revenue before concluding the assessment. The Ld.AR further argued that the assessees were not provided with proper opportunity of being heard. It was therefore pleaded that the matter may be remitted back to the file of Ld.AO for fresh consideration. The Ld.DR strongly opposed to the submission of the Ld.AR and requested for confirming the orders of the Ld.Revenue Authorities. 8. We have heard the rival submissions and carefully perused the materials on record. At the outset we must say that the Ld.AR could not justify before us any of their claims made before the Ld.Revenue Authorities that the transaction was genuine. Further the Ld.AR could not succe....