TaxTMI 
TaxTMI 
2019 (9) TMI 1089
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....g Officer on consideration of the replies and responses of the assessee in pursuance of the notices issued to the assessee, computed the net taxable income at Rs. 78,74,456/-. The AO added the amount of Rs. 73,77,806/- by denying the exemption claimed under Section 10 (38) of the Act on account of LTCG. The Assessment Officer (AO) found the transaction pertaining to purchase of shares by the Appellant/Assessee of M/s Smartchamps IT and Infra Ltd., which was merged with M/s Cressanda Solutions Ltd., to be a bogus transaction by holding that M/s Cressanda Solutions Ltd. was a penny stock. The appeal preferred by the Appellant before the learned CIT (Appeals) met the same fate and the findings of fact in relation to the transaction being bogus were upheld by the CIT (Appeals). The further appeal preferred before the ITAT has been dismissed and the ITAT has once again found the said transaction to be bogus. 4. We have, therefore, at the outset put it to learned counsel for the Appellant that since there are consistent findings of fact and the entire dispute raised by the Appellant is factual, there is no reason for the Court to entertain the present appeal and no question of law ari....
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.... purchase of 15,000 shares of Smart champs IT and Infra Ltd. on 22.09.2011. Most importantly, in spite of earning so much of profit, the assessee has never embarked upon any transactions for investments with the broker or in any other dealing of shares. The revenue from operations of Cressanda Solutions Ltd. for the year March 2012 was Rs. 00 and, for the year March 2013 is Rs. 0.99 Cr. The financials of the company proving that the entity is a penny stock company are as under: Balance Sheet of Cressanda Solution ----------in Rs. Cr.---------- Mar 16 12 mths Mar 15 12 mths Mar 14 12 mths Mar 13 12 mths Mar 12 12 mths EQUITIES AND LIABILITIES SHAREHOLDER FUNDS Equity Share Capital 30.36 30.36 30.36 30.36 9.00 Total Share Capital 30.36 30.36 30.36 30.36 9.00 Reserves and Surplus - -065 -0.82 0.63 -8.89 Total Reserves and Surplus - -0.65 -0.82 0.63 -8.89 Total Shareholders' Funds 29.29 29.71 29.54 30.99 0.11 NON CURRENT LIABILITIES Long Term Borrowings....
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....P and stock in trade 0.00 0.00 0.70 0.00 0.00 Employee Benefit Expenses 0.05 0.04 0.03 0.06 0.00 Depreciation and amortization expenses Other Expenses 0.14 0.28 2.14 0.41 0.04 Total Expenses 0.20 0.32 8.02 0.57 0.04 Mar 16 12 mths Mar 15 12 mths Mar 14 12 mths Mar 13 12 mths Mar 12 12 mths Profit and loss before exceptional, extra ordinary items and tax 0.17 -0.15 -1.44 0.49 -0.02 Profit and loss before tax 0.17 -0.15 -1.44 2.49 -0.02 Tax expenses continued operations current tax 0.00 0.00 0.00 0.09 0.00 Tax for earlier years 0.25 0.00 0.00 0.00 0.00 Total tax expenses 0.25 0.00 0.00 0.09 0.00 Profit/loss after tax and before extra ordinary items 0.42 -0.15 -1.44 0.40 -0.02 Profit/loss from continuing operations 0.42 -0.15 -1.44 0.40 -0.02 Mar 16 12 mths Mar 15 12 mths Mar 14 12 mths Mar 13 12 mths Mar 12 12 mths OTHER ADDITIONAL INFORMATION EARNINGS PER SHARE &nb....
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....l gains. The ratio laid down by the Hon'ble Supreme Court in the case of Sumati Dayal vs. CIT, 214 ITR 801 is squarely applicable to the case. Though the assessee has received the amounts by way of account payee cheques, the transactions cannot be treated as genume in the presence of the overwhelming evidences put forward by the Revenue. The fact that in spite of earning such steep profits, the assessee never ventured to involve himself in any other transaction with the broker cannot be a mere coincidence of lack of interest. Reliance is placed on the judgment in the case of Nipun Builders and Developers Pvt. Ltd. (supra), where it was held that it is the duty of the Tribunal to scratch the surface and probe the documentary evidence in depth, in the light of the conduct of assessee and other surrounding circumstances in order to see whether the assessee is liable to the provisions of section 68 or not. In the case of NR Portfolio, it was held that the genuineness and credibility are deeper and obtrusive. Similarly, the bank statements provided by the assessee to prove the genuineness of the transactions cannot be considered in view of the judgment of Hon'ble court in the ca....