2019 (8) TMI 1732

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e of shares of M/s. Sulabh Engineering and Services Ltd. (hereinafter 'M/s. SESL') under Section 68 of the Income Tax Act, 1961 (hereinafter 'the Act'). 3. Brief facts of the case as noted by the AO is that he got information from the Investigation Wing that the assessee had indulged in bogus LTCG from the transaction of purchase and sale of shares of M/s. SESL. So he asked the assessee to furnish the details for which he has asked twenty queries which have been reproduced at page 2 of the assessment Order. The AO acknowledges that the Kartha of the assessee (HUF) appeared before him and filed the documents from which it transpired that the assessee had purchased 800 shares of M/s. SESL at the rate of Rs. 42.67 for a total amount of Rs. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nuary, 2013 is beyond the human probabilities and is a colourable device to convert the unaccounted money into tax exempt income. Thereafter the AO describes the general modus operandi adopted by unscrupulous brokers and certain penny stock companies and thereafter, he finds fault with the assessee purchasing shares in an off market transaction which according to the AO was a transaction carried out in a pre-planned manner to launder the black money and taking note of certain doubts he expressed in respect to the transactions in question was of the opinion that the assessee's claim of LTCG is not real; and he held it as bogus and by applying the test of human probabilities he treated the entire receipt of Rs. 15,95,713/- as a fabricated tra....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... through the same broker and the contract note evidencing the same is found placed at page 5 of the PB. Another lot of 4000 shares were sold on 22.08.2014 for a total amount of Rs. 9,61,910.78/- and the contract note evidencing sale is found placed at page 4 of the PB. I also note from the bank statement placed at page 8 of the PB that both sale consideration has been received through banking channel (on 23.06.2014 an amount or Rs. 9,84,198.27/- and on 01.09.2014 Rs. 9,61,910.78/-). Page 10 of the PB shows DEMAT statement reflecting sales of shares on 18.06.2014, 4000 numbers of shares and on 22.08.2014 the rest of the 4000 shares. I also note that assessee has furnished all the aforesaid documents before the AO vide letter dated 08.09.2017....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... assessee submitted the NSDL statement showing allotment of 7,50,000 shares of M/s Sulabh Engineers and Services Ltd. at fair value of Rs. 1 (PB-14 to 17). The balance sheet and profit & loss account along with investment schedule showing 7,50,000 shares of M/s Sulabh Engineers and Services Ltd. for assessment year 2013-14 (PB-18 to 23) were also submitted. The assessee also submitted the sale bill along with contract note from broker for sale of 1,25,000 shares of M/s Sulabh Engineers and Services Ltd. (PB-23 to 46). The broker's statement showing payment made for the sale has also been submitted by the assessee,(vide PB-47 to 59). The bank statement reflecting receipt of sale consideration for sale of 1,25,000 shares of M/s Sulabh Enginee....