TaxTMI 
TaxTMI 
2021 (6) TMI 1029
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....laced on record including allotment letter, acknowledgment of bank regarding request for dematerialization, contract note for sale, ledger account of assessee in the books of broker, Demat account etc. As such, the addition of Rs. 41,00,925/- may please be deleted. 3. That the Id. CIT(A) erred in law and facts of the case while not appreciating that the addition made Ld. AO is merely on the basis of conjecture and surmises without bringing on record any specific cogent material against the assessee. As such, the addition of Rs. 41,00,925/- may please be deleted. 4. That the ld. CIT(A) failed to appreciate that the Ld. AO has erred in law while making addition to the income of assessee without confronting the assessee with the alleged Statements or evidences wherein name of the assessee has been mentioned, on the basis of which allegation has been made that LTCG on sale of shares of Cressanda Solutions Ltd. of Rs. 41,00,925/- is non-genuine. As such, the addition of Rs. 41,00,925/- may please be deleted. 5. That the ld. CIT(A) has failed to consider while upholding the addition of Rs. 2,10,046/- on account of brokerage or commission, being estimated @ 5% b....
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....by making any request for cross examination of the persons who had given statements on the basis of which the Directorate of Investigation has unearthed the scam on the issue of obtaining LTCG. The facts of the case as brought-out above, it is self- evident that here is a case where apparent is not real and therefore not sacrosanct. Most importantly, it doesn't accord with the test of human probabilities. In light of the test of human probabilities as laid down in Sumati Dayal Vs CIT , the only reasonable inference likely lo be drawn reasonably by a majority is that the assessee's transaction in the manipulated script of M/s Crossanda Solutions Ltd are non-genuine one. Therefore, it is being hold that the assessee has used a prearranged device in form of booking of Bogus LTCG ol amount Ks. 41,00,925/- during the relevant year to bring into books his unaccounted income in view of tire elaborate discussion made above, I hereby hold the amount of Rs. 41,00,925/- introduced/credited by the assessee out of these purported share sale receipts during tire financial year 2013-14 (relevant to the Asst. Year 2014-15) in his capital account as his income being unexplained cas....
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....24.01.2013 and the assessee transferred dematerialized shares of M/s Cressanda solutions Ltd. to his Demat account on 14/03/2013. The shares were then subsequently sold on 26/04/2013 through Bombay stock exchange at a consideration of Rs. 42, 00, 925/-. The Assessing Officer has found that inquiries were conducted by the Securities Exchange Board of India (SEBI) and interim ex parte order dated 19/12/2014 was passed by the SEBI for restraining 108 entities including M/s Cressanda Solutions Ltd. and its promoters and directors from accessing the securities market. The Assessing Officer has reproduced chart of price fluctuation in the scrip over a period of four years and found that prices were artificially rigged by the bogus paper companies and after providing accommodation entries of long-term capital gain, the prices of the shares had fallen at their initial prices. The Assessing Officer also recorded statement of the assessee and he did not find satisfactory explanation of identifying the scrip for investment. He has also reproduced the financial of M/s Cressand Solutions Ltd., which according to him are not supporting huge rise in share price. The Ld. CIT(A) has reproduced s....
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....been done just a few days prior to the sale. In such case off market transactions, as per SEBI guidelines, a broker cannot issue a brokerage note containing time stamp of stock exchange traded time even though the transactions are not routed through stock exchange and such transactions are off market transactions. SEBI had vide Circular No. SMDRP/Policy/CIT-21/99, dated 14th September'1999 banned all negotiated deals including cross deals and all such deals are required to be executed only on the screens of exchanges in the price and order matching mechanism of the exchange just like any other normal trade. Thus from the above, it can be seen that such transactions are illegal, and are not in conformity with regulatory guidelines. C) ASSESSEE NOT A REGULAR INVESTOR IN SHARES: The assessee is not a regular investor in shares. Hence, it is quite surprising as to how he earned a phenomenal return of 42 times within a short span of period which is extremely unusual. The past records of the assessee for the preceding years show that the assessee has never transacted in the stock market. This being the case, the assessee has entered into a sham transaction with the ....
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....n No. Ill 21, New Marine Lines 3rd Floor, Mumbai - 400 020. Securities) Equity Shares issued on Reduction) Equity Shares issued issued on Amalgamation : 3,03,57,750 Equity Shares@ Rs. 10/- each 4,50,000 Equity Shares @ Rs. 10/- each 2,99,07,750 Equity Shares @ Rs. 10/- each Distinctive numbers : 1 to 3,03,57,750 Scrip Code : 512379 Group : T Market Lot : 1 Face Value & Paid up value : Rs. 10/- each fully paid up Scrip ID on BOLT System : CRESSAN Abbreviated name on BOLT System : CRESSANDA SO ISIN No. : INE716D01025 The brief particulars of the scheme of reduction in capital are as mentioned below: The scheme of reduction in capital of the Company was approved by Hon'ble High Court of Bombay vide its Order dated January 24, 2C13. b) As per the scheme, the issued, subscribed and paid-up equity capital of the company stands reduced from Rs. 900 lacs consisting of 90,00,000 equity shares of face value of Rs. 10/- each to Rs. 45 lacs consisting of 4,50,000 equity shares of Rs. 10/- each by way of reduction of share capital by 95%, followed by amalgamation of Smartchamps IT & I....