TaxTMI 
TaxTMI 
TaxTMI 
2019 (2) TMI 226
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.... are common arising out of identical set of facts, therefore the same were heard together and are being disposed of by way of this consolidated order. 2. We are taking up the appeals in the case of Vidhi Malhotra wherein the assessee has raised following grounds:- 1. "That the Ld. CIT(A) has erred on facts and under the law in confirming the addition of Rs. 36,38,067/- under section 68 of IT. Act as against long term capital gain of Rs. 36,38,067/- claimed as exempt under section 10(38) of IT. Act inter alia because: (i) Statement of Shri Sunil Dokania and 16 other persons recorded by DDIT (Inv), Kolkata did not have any evidentiary value as the same were recorded in the absence of the Appellant. (ii) Copies of statements of 16 oth....
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....s. Kailash Auto Finance Ltd. on 9.5.2013 by Hon'ble High Court of Allahabad, the details of which were as under:- Scrip Purchased M/s. Careful Project Advisort Ltd. which amalgamated into M/s. Kailash Auto Finance Ltd. on 9.5.2013 by Hon'ble High Court of Allahabad. No. Of shares purchased 100000 Date of purchase 13.12.2011 Amount paid Rs. 1,00,000/- Broke through whom purchased Direct purchased offline. No STT paid No. Of shares sold 100000 Date of sale (NSE) 06-08-2013, 07-08-2013, 08-08-2013 and 01-10-2013 and STT Paid Broker Sharekhan Ltd. Amount received Gross Amount Rs. 37,40,701/- net amount Rs. 37,35,000/- 3. Thereafter, Ld. AO held that scrips of M/s. Kailash Auto Finance Ltd. were used by entry providers for pr....
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.... shares of 'M/s. Careful Project Advisor Ltd.' on 13.12.2011 from Jatadhari Marketing Pvt. Ltd. which is evident from sale bill placed at the paper book page 13. The aforesaid shares were transferred to assessee in her DMAT account on 18.2.2012 with Sharekhan Ltd. The Hon'ble Allahabad High Court vide judgment order dated 9.5.2013, had ordered that two companies namely, M/s. Careful Projects Advisory Ltd. and Panchashul Marketing Pvt. Ltd. will be amalgamated with M/s. Kailash Auto Finance Ltd. Accordingly, in lieu of one lac shares of Careful Projects Advisory Limited, shares of Kailash Auto Finance Ltd. was acquired by the assessee. This has been confirmed by the company videe allotment vide letter dated 6.8.2013. The assessee has sold th....
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.... the assessee then it does not have any evidentiary value. Thus, without their being any specific material relating to assessee no adverse inference can be drawn. 7. On the other hand Ld. DR submitted that once it has been unearthed by the Investigation Wing that scrip of Kailash Auto Finance Ltd. was used for providing bogus long term capital gain to various people, then there is a strong presumption that assessee too has taken such accommodation entry. This is more so when assessee has purchased the shares of Rs. One lac and in one and a half year has sold it at more than 37 times. This shows that how scrips have been manipulated for providing such long term capital gain. 8. On perusal of the material placed on record, we find that in s....
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....hat date. Before us it has also been brought on record that SEBI vide its order dated 21st September 2017 has revoked the ban on Kailash Auto Finance Ltd. Para 5 of the said order reads as under :- "Pursuant to the interim order, SEBI conducted a detailed investigation into the role of various entities in price manipulation in the scrip of Kailash Auto so as to ascertain the violation of securities laws. Upon completion of investigation by SEBI, investigation did not find any adverse evidence/adverse findings in respect of violation of provisions of the PFUTP Regulations in respect of the following 244 entities (against whom directions were issued vide the interim order and / or confirmatory orders) warranting continuation of action under....