TaxTMI 
TaxTMI 
2021 (7) TMI 871
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....e the value shown in the contract note for sale was different than the value shown in Form 10DB in respect of transactions of shares of Ceat Limited". 2. After hearing the rival contentions, we find that the sole issue involved in the ground of appeal for adjudication is the value of sale of equity shares of Ceat Limited. The Assessing Officer considered the sale consideration of equity shares as per the computation for calculating Securities Transaction Tax. The assessee's contention that the actual sale consideration has to be taken and not the value considered for computing STT, was rejected by both the Assessing Officer as well as ld. CIT (Appeals). We have gone through the detailed submissions made by the assessee. The same is ext....
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....en the basis for form 10DB on which STT is further calculated. This Circular is at Page 40 to 42 of PB. Therefore, it is not always a case where "Sale Value" as appearing in a contract note matches with "Value" for calculating STT (in Form 10DB). 3.02 During the financial year 2015-16, the assessee transacted in shares of Ceat Limited on 5 different dates as per Table A given below: Table A (A)Date of transactio (B) Contract Note No (C)Qty .Bough (D)Qty. Sold (E)Sale value after brokerage (F) Speculation gain/loss (G)Form10DBvalue (H)Form10DBvalue(other than n t (Deliver) delivery) 1.4.15 NR/13511 2500 2065330.40(page10) 2067400(page11) 6.4.15 NR/32842 &n....
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....tract Notes (Column H) are matching with the values given in "Reconciliation Statement of Speculative Gain j (Loss) vis-à-vis Value appearing in Form No. 10DB in Exhibit - 3. 5. A reconciliation of the transactions of Contract Note No: N/R/215851 of 20.04.2015- (Page 18 to Page 20 of PB) Ceat Limited 7500 Purchase Rs. 6887064 . 35 Ceat Limited 7500 Sale Rs. 67 , 58 , 500 . 51 Hedging gain/ loss Rs. 128564 . 34 Ceat Limited 4000 Sale Rs. 3590043 . 20 Sale recorded in books Rs. 3461478 . 86 From the aforesaid contract note N/R/215851 of 20.04.2015 and chart it is evident that the assessee appropriated the loss on 7,500 shares of Ceat Limited of (Rs. 1,28,564) as Hedging Loss on which ....
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....9;s contention is not acceptable. On this basis Rs. 1,52,000 is added with returned income as undisclosed value of shares during speculation transaction." The assessee refers to the contract note no N/R/158010 dated 15.04.2015 for Wockhardt Limited (Page 24 to 29 of PB) which was submitted during the course of assessment proceedings on 15.11.2018. The relevant data is reproduced below: Wockhardt Ltd. 1000 Purchase Rs. 1768927 . 50 Wockhardt Ltd. 1000 Sale Rs. 1757519 . 00 Hedging gain/ loss Rs. 11408 . 50 Wockhardt Ltd. 1000 Sale Rs. 1761385 . 90 Sale recorded in books( as per contract note) Rs. 1749977 . 40 The assessee further submits that the data as per Page 27 of PB on the aforesaid c....
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....Form 10DB was bound to arise because of the methodology of computing sales for the purpose of charging SIT. There is not much merit in the claim of the appellant. He could not reconcile in difference in turnover as reflected in the books and in Form 10DB. Form 10DB is evidence of payment of SIT on transactions entered through recognized stock exchange. Therefore, there cannot be any difference in turnover between SIT and books. The A/R of the appellant had emphasized the point that the method for computing turnover for arriving SIT is different. However, there is not much credence in the submission of the appellant. The Circular No. NSE/CMO/0146/2004 dated 11.11.2004 only relates to computation of SIT and does not relate to computation of t....
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....e value was same for both the types of transactions. 10.02 It duly disclosed the sale value of 8,000 shares of Ceat Limited at Rs. 67,85,804.96 as is evident from Exhibit - 2 appearing at Page 30 of PB as well as Table A above. The value of Rs. 69,56,975 is the value shown in Form 10DB in respect of these 8,000 shares. 10.03 The value on 20.04.2015 of Rs. 68,04,975 is the Form 10DB sale value of shares of Ceat Limited on speculation on which the assessee incurred a hedging loss of (Rs. 128,564), which was duly disclosed vide Exhibit - 3 appearing at Page 31 of PB and Table A above. 11. As such the conclusion arrived by the learned AO that the assessee suppressed the value of sales by comparing two figures of Rs. 68,04,975 and Rs. 69,5....