2019 (3) TMI 647

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....olding the order of CIT Appeals held that the long term capital gains brought to tax amounting to Rs. 1,03,24,645/- by the Assessing Authority as unexplained income under Section 68 of the Act was justified. The Tribunal rejected the claim of the Assessee of Long Term Capital gains being exempt under Section 10(38) of the Act. 2. Thus, concurrently all the three authorities below held against the Assessee, that the transaction of sale of shares in question a Penny Stoks by the Assesee for earning the said alleged huge long term capital gains was not reliable because the information provided, by the statements recorded of one Mr.Deepak Patwari under Section 131 of the Act on 22.07.2013 to the effect that the transactions in the share of M/s....

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....eady reference:- "The Assessee's reply was considered carefully. It is pertinent to mention here that the various judicial decisions cited by the Assessee are not of jurisdictional High Court. Further, the Assessee's case is one in which creation of bogus LTCG has been reported. Subsequently, a summons U/s. 131 of the Income Tax Act, 1961 was issued to Shri Deepak Patwari was issued on 08.02.2016 requesting him to appear before the undersigned on 26.02.2016 at 11.00 a.m. However, he did not appear on the said date and time. Hence, the issue is decided on the basis of the materials available on record. As mentioned above, from the statement given by Shri Deepak Patwari on oath on 22.07.2013 before the DDIT (Inv.) Unit 1(3), Kol....

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....various judicial decisions cited by the Assessee are not of jurisdictional High Court. Further, the Assessee's case is one in which creation of bogus LTCG has been reported. Subsequently, a summons under Section 131 of the Income Tax Act, 1961 was issued to Shri. Deepak Patwari was issued on 08.02.2016 requesting him to appear before the undersigned on 26/0/2016 at 11.00 a.m. However, he did not appear on the said date and time. Hence, the issue is decided on the basis of the materials available on record. As mentioned above, from the statement given by Shri. Deepak Patwari on oath on 22.07.2013 before the DDIT (Inv.), Unit-1(3), Kolkatta, the Assessee has taken entries for bogus Long Term Capital Gains. Further, the transactions in....

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....ow she identified Luminaireire Technologies Limited for investment and how she sold its shares. Assessee failed to bring in any evidence to show that long term capital gains claimed by it was correct. In our opinion the lower authorities were justified in taking a view that such claim arise from sham transactions made through entry providers. We do not find any reason to interfere with the orders of the lower authorities." 7. Thus it appears that while it was for the Assessee to appear and adduce the relevant evidence for the genuineness of the transaction of sale of the shares, the Assessee was not vigilant and co-operative enough and did not produce the relevant evidence before the authorities below and did not even appear before the app....