TaxTMI 
TaxTMI 
2019 (8) TMI 1059
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..../- on the sale of Comfort Fincap Ltd. (COMFINCAP). 3. Brief facts of the case are that the AO has passed the Assessment Order dated 24th November, 2016. The AO passed the scrutiny assessment under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act') wherein the trading loss of Rs. 6,89,049/- claimed by the Assessee Company [A Non-Banking Financial Company] engaged in trading of shares and securities - (page 5 of the Paper Book)] on sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" was disallowed by Assessing Officer (AO) and added back to the total income of the Assessee which action was confirmed by Ld. CIT(A). The Ld. CIT(Appeals) had confirmed the action of the Assessing Officer by disregarding the doc....
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....as pointed out by the Ld. AR that the AO failed to appreciate that in the present case transactions of purchase and sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" were executed on the Bombay Stock Exchange in terms of the agreement between the Calcutta and Bombay Stock Exchange under section 13 of the Securities Contracts (Regulation) Act, 1956. The Ld. AR drew our attention to page 34 and 36 of the Paper-book wherein the said fact is discernible from a perusal of the Contract Notes, evidencing purchase and sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" is seen appearing at those pages respectively, wherein it is noted that at the bottom of the said Contract Notes the following statement was recorded wi....
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.....03.2014 evidencing sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" through broker viz. M/s. Indovision Stock Broking Services Private Limited, a member of Calcutta Stock Exchange, the trade being executed on the Bombay Stock Exchange. [Page 36 PB] v. Bank statement evidencing receipt of sale proceeds from the broker viz. M/s. Indovision Stock Broking Services Private Limited through banking channel. [Page 37 PB] vi. De-mat statement of the Assessee Company for the period 1st April, 38 - 41,38 2013 to 31st March, 2014 wherein all the transactions of purchase and sale of shares and securities made by the Assessee Company, including transactions in the M/s. Comfort Fincap Limited or "COMFINCAP", we....
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.... Properties Private Limited [ITA No. 105 of 2016] v. CIT V. Andaman Timbers Industries Limited [ITA No. 721 of 2008] vi. CIT V. Bhagwati Prasad Agarwal [2009- TMI-34738-ITA No. 22 of 2009, Order dt. 29.4.09] 9. The Ld. Counsel for the assessee submits that, the assessee has produced all the evidence within its command in support of the genuineness and correctness of the transactions. He submitted that the share transactions were done through recognized share broker firms on the stock exchange and that STT was paid on all transactions. He contended that the entire disallowance of the claim of the assessee was made based on suspicion. According to Ld. AR addition cannot be made in the case of the assessee wherein overw....
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.... the papers on record, orders of the authorities below as well as case law cited, I hold as follows:- 13. There is no dispute that the assessee has furnished all the evidences as sought for by the Assessing Officer which fact is evident from the documents filed at Para 5 (supra). The Assessing Officer has relied on the report of the investigation wing of the department. 14. It is noted that the assessee has purchased and sold shares through recognized broker. Copies of Contract notes, copies of payment through banks, De-mat statement and other evidences were filed in support of the genuineness of the transactions at Para 5 (supra). The AO has disallowed the claim of assessee on the sole reason that this scrip was suspended by Calcu....