TaxTMI 
TaxTMI 
2021 (1) TMI 896
X X X X Extracts X X X X
X X X X Extracts X X X X
....ubmitted that if the date of service is considered as having received through e-mail then there is delay of four days and if the physical receipt of order of learned CIT(A) is to be considered then there is no delay. Therefore, it was submitted that little delay if any had occurred due to confusion and it was prayed that the delay in filing the appeal be condoned. Learned D. R. did not have objection for condoning the delay in filing the appeals. Finding the reason for delay in filing the appeals reasonable, the delay was condoned and the Learned counsel for the assessee was asked to proceed with his arguments. 3. Learned counsel for the assessee submitted that he will be arguing the appeal in I.T.A. No. 501/Lkw/2019 in the case of Shri Achal Gupta and arguments in respect of all other appeals will be same as the same issue is there in all other appeals. Learned counsel for the assessee submitted that the assessee had purchased shares of CCL International Ltd. and had made the payment for purchase of such shares through cheques and these were purchased from Suktara Trade Links Pvt. Ltd. Learned counsel for the assessee submitted that the shares were held in demat account and after....
X X X X Extracts X X X X
X X X X Extracts X X X X
....statement of various brokers, some scripts including the script traded by the assessee was held to be a penny stock and paper entity and therefore, the Assessing Officer has rightly disallowed the claim of the assessee. It was submitted Hon'ble Delhi High Court in the case of Udit Kalra vs. Income Tax Officer, I.T.A. No.220/2019, vide order dated 08/03/2019 has dismissed the appeal of the assessee under similar facts and circumstances. Learned D. R. further submitted that facts regarding this script being a penny stock and paper entity was already there in the possession of the Revenue and therefore, the authorities below have rightly made and sustained the addition. Learned DR further stated that before learned. CIT(A) no body appeared and therefore the case may be set aside to him and assessee can make his submissions regarding non confrontation of statements of brokers. 5. Learned counsel for the assessee, in his rejoinder, submitted that Hon'ble Tribunal in the case of Reeshu Goel has considered the case law of Udit Kalra and moreover it was submitted that the decision of Hon'ble High Court do not have precedential value as the Hon'ble High Court has dismissed ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0 equity shares of CCL Ltd. The bill of broker of Suktara Trade Link is at Page 17. The evidence of sale of such shares through Edelwise financial Advisors Ltd showing deduction of service tax and securities transaction tax is placed at P.B. 18 to 23. Paper book pages 32 shows that shares of CCL International Ltd. were in the demat account of assessee and the fact of these shares having been transferred to the account of brokers M/s Edelwise Financial Advisors on account of sale is also apparent from this paper. The transaction statement placed in paper book also proves that assessee was holding a number of scrips. All the documents clearly demonstrate that assessee did earn long term capital gain and moreover the Assessing Officer has not doubted any of the above documents. The only objection raised by the authorities below is that the script from which the assessee had earned Long Term Capital Gain has been held by the Investigation Wing of the Revenue to be a paper entity and which has further held that this scrip was being used for creating artificial capital gain. We find that Hon'ble Tribunal in the case of Reeshu Goel has examined this aspect and after recording detailed....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pital gain through genuine purchase and sale of shares of the listed companies in normal course. There was no default on the part of the appellant. Moreover, the appellant has earned the income strictly following the norms and guidelines of SEBI. If M/s CCL International has been identified as BSE Listed penny stock, the appellant is not even remotely connected with these companies. She was not at all in a position to influence the purchase and sale prices of their shares. Hardship cannot be brought on the appellant, if default is made by company which is listed in the BSE. c) In support of the genuineness of the transaction the appellant produced the following at the time of assessment proceeding: a) Copy of allotment letter issued by M/s AAR Infrastructures Limited. (Page 25) b) Copy of bank statement reflecting the payment made for the purchase of 50000 equity shares. (Page 26) c) Copy of Demat Account of the appellant. (Page 27) d) Copy of statement of broker reflecting the credit of 50000 equity share through preferential allotment. (Page 28) e) Copy of order of Delhi High Court, dated 08.10.2011 in the matter of amalgamation of M/s AAR Infrastructure Limited into ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the rise was beyond the cap laid down by the SEBI, because the price of the scrip cannot rise beyond the cap prescribed by the SEBI. If the shares have been purchased and sold from the stock exchange on a quoted price with proper contract number, trade time and after paying STT, then it is very difficult to assume that the sale proceeds received from sale of such shares is bogus, especially when purchase of shares are not in dispute. This inter alia means assessee was in possession of shares which were also dematerialised. To prove that such a transaction was in the nature of bogus or colourable transaction, there has to be some inquiry or material to nail the assessee that she was some kind of a beneficiary in some accommodation entry operation. No defect has been pointed out in the documents submitted by the assessee nor has the broker of the assessee been inquired upon. Simply relying upon the general modus operandi and statement of some brokers recorded by the Kolkata Investigation Wing does not mean that all the transactions undertaken of the scrip M/s. CCL International Ltd. through the country by millions of subscribers are bogus. Thus, in absence of any material or eviden....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ne of Rs. 13,33,956/- and Rs. 14,34,501/- in respect of 4,000 shares of M/s Kappac Pharma Ltd. The assessee held those shares for approximately 19 months; the acquisition price was Rs. 12/- per share whereas the market price of the shares at the time of their sale, was Rs. 720/-. It is contended that the assessee was not granted fair opportunity. Mr. Rajesh Mahna, learned counsel appearing for the assessee relied upon the orders of the co-ordinate Bench of the tribunal, in respect of the same company i.e. M/s Kappac Pharma Ltd., and pointed out that the tax authority's approach in this case was entirely erroneous and inconsistent. The main thrust of the assessee's argument is that he was denied the right to cross-examination of the two individuals whose statements led to the inquiry and ultimate disallowance of the long term capital gain claim in the returns which are the subject matter of the present appeal. This court has considered the submissions of the parties. Aside from the fact that the findings in this case are entirely concurrent - A.O., CIT(A) and the ITAT have all consistently rendered adverse findings - what is intriguing is that the company (M/s Kappac P....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 10, are also allowed in view of our findings that the transaction was not bogus. 8. In nutshell, the appeal of the assessee in ITA No. 501 is partly allowed. 9. Now coming to appeals in ITA Nos. 502, 504 and 505. The facts and circumstances in all these appeals are similar and there is also the same scrip of CCL International Ltd. and in these cases also the only objections of the Assessing Officer is that the scrip was a penny stock. In these cases also the assessee had filed complete details before the Assessing Officer which is apparent from the paper books. For the sake of completeness, we reproduce the relevant documents in these appeals filed before Assessing Officer: ITA No.502 S.No. Particulars P.B. Page 1. Copy of Bank statement of Federal Bank from where the payment of Rs. 8,25,000/- shares was made. 4 to 5 2. Copy of bill of Suktara Trade Link (P) Ltd. from whom shares were purchased. 6 3. Copy of transaction statement issued from NSDL. 7 to 14 4. Copy of contract notes issued by Edelwise Financial Advisors 15 to 21 5. Copy of Transaction statement from NSDL 30 to 47 ITA No. 504 1. Copy of Account with State Bank of India from where Payment....