TaxTMI 
TaxTMI 
2020 (1) TMI 816
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....onjectures and surmises without looking into the records and evidences filed by the appellant. 5. That in law and facts of the case the CIT(A) is wrong in confirming the addition of Rs. 9,63,950/- as income from unexplained source. 6. That the addition made is against the law and facts of the case. 2. The AO completed the assessment u/s. 143(3)/254 of the Income Tax Act, 1961 (in short "Act") in compliance of the order dated 06.12.2010 passed by the ITAT, Delhi Bench 'C', New Delhi in ITA No. 4180/Del/2009 in the case of the assessee. 2.1 The assessee is an individual and shown salary income and income from M/s Global Health Care Pvt. Ltd. He has shown capital gain and income from other sources also. The return of income was filed on 28.1.2014 declaring income of Rs. 23,85,514/-. The AO examined the same and found that assessee has shown long term capital gain of Rs. 9,85,820/-. The long term capital gain has been shown on the sale of 10000 shares of M/s Supreme Agro Products Ltd. through DN Kansal Securities Pvt. Ltd., who is a broker with Delhi Stock Exchange. The AO called the detail from the assessee in respect of the shares of M/s Supreme Agro Products ....
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..... At the time of hearing, Ld. Counsel for the assessee filed Written Submissions containing pages 1-6 and also enclosed some orders of the ITAT and the judgement of the Hon'ble Supreme Court and the Hon'ble High Courts. Ld. Counsel for the assessee has also filed a very voluminous paper book containing pages 1-113 in which he has attached the written submissions, before the Tribunal from pages 1-14 and other necessary documents including assessment order, appellate order, allotment letter of the shares and contract note and copy of account payee cheque and copy of orders of the Tribunal and judgment of Hon'ble Supreme Court of India and the Hon'ble High Courts. Ld. Counsel for the assessee finally requested that in view of the written submissions filed by him and the paper book in which he has attached the various documentary evidences supporting the claim of the assessee, the appeal of the assessee may be allowed by deleting the addition in dispute. 4. On the contrary, Ld. DR relied upon the orders of the authorities below and stated that assessee has filed his return of income on 28.10.2004 in which long term capital gain on the sale of 10000 shares from M/s Supreme Agro Produ....
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....ned in para no. 6.2 at page no. 7 of his impugned order. For the sake of convenience, the para no. 6.2 is reproduced as under:- "6.2 During the course of appellate proceedings, this office issued notice to M/s Superme Agro Products Pvt. Ltd. dated 1.12.2013, in which the following details were called for:- Mr. Gautam Thadani, C-31, Mayfair Garden, New Delhi has claimed to have been allotted 10,000 shares of your company, as an original allottee on 04.03.2002. 2. You are requested to kindly confirm whether shares were allotted to Mr. Gautam Thadani by your company on the above mentioned dates. In case such transactions are confirmed, kindly furnish the following documents to the undersigned: (i) Copy of share application by Mr. Gautam Thadani. (ii) Copy of transfer deeds in respect of shares claimed to have been sold by Mr. Gautam Thadani. (iii) Details of payment made by Mr. Gautam Thadani for the purpose of applying for shares. 3. You are also requested to furnish the details of prevailing market value of the shares as on the first date and as on the last date of may 2003, as mentioned in your annual accounts. ....
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....respond to the query raised by the Ld. CIT(A). After verification from the Delhi Stock Exchange about the confirmations of the sale of shares in dispute reply was negative against the assessee that no such shares purchased and sold by this company which is held by the assessee. The assessee himself informed vide letter dated 23.1.2014 that he has not dealing with the broker, hence, did not have the latest address of that broker. The concerned Income Tax Officer was also asked by the Ld. CIT(A) to conduct the enquiry through the Income Tax Inspector (ITI), the ITI found that the address given by the Delhi Stock Exchange did not exist. The revenue authority has also made the enquiry on google map about the broker and found the office of the broker and visited the same and found that premises was locked. The AO has also sent summons to the Directors of M/s DN Kansal Securities Pvt. Ltd. namely Mahinder Kumar Gupta and Mukesh Pal and got served through the SHO, Kavi Nagar, Ghaziabad UP on 29.8.2014 calling for their presence on 03.09.2014. The SHO get the summons served on Sh. Lekh Raj Father of Sh. Mukesh Pal in the presence of one neighbour Ms. Manju and Ms. Meenu sister of Mukesh....
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....02 on the receipt of cheque and on the same date at the face value of Rs. 10 per share, but the assessee could not file any documentary evidences to establish that any shares were actual allotted to the assessee despite repeated opportunity given by the revenue authorities to the assessee and to M/s Supreme Agro Products Pvt. Ltd. and its Directors mentioned above. M/s Supreme Agro Products Pvt. Ltd. failed to provide the copy of transfer deed and details of specific shares shows that the purchase as well as sale of the shares do not stand proved. The revenue authorities has also issued summons u/s. 131(1) of the Act which was duly served upon two directors of M/s DN Kansal Securities Ld claimed to be the buyer of such 10000 shares through service Income Tax Inspector and through concerned SHO of the PS Kavi Nagar, Ghaziabad. Both Directors do not comply the notices. Despite several reminder from M/s Supreme Agro Products Pvt. Ltd. failed to provide the crucial information, the penalty u/s. 272A of the Act and penalty of Rs. 10000/- was levied on Mr. Praveen Kumar, Director of that company. I am of the view that no real transaction of purchase and sale of shares of M/s Supreme Agro....