AI Drafter 
TaxTMI 
TaxTMI 
2021 (9) TMI 1034
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....tion of Rs. 49,50,000/- by treating the said amount of sale proceeds of the 45,000 equity shares of Emporis Projects Ltd. as an unexplained cash credit u/s 68 of the Act merely on surmises by ignoring the evidences on record. The addition so made is illegal, against the provisions contained in the Act, bad in law and hence liable to be deleted. 2. The CIT(A) erred in law and on facts in confirming the action of the assessing officer to treat the said sale proceeds of the equity shares as assessable u/s 115BBE of the Act which is against the fundamental principles of law. Thus, the said directions should be reversed. 3. The CIT(A) erred in law and facts in not giving directions to carry forward the long term capital loss as....
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....ubmitted the following explanation/documentary evidence to substantiate the sale of the shares :- i) "payment for the shares was made directly to the company on 03.02.2011 from my saving account no. 5221 with PNB Delhi: ii) the shares were subsequently allotted to me by the company on 31.03.2011: iii) the shares were sold to M/s Virat Vintrade Pvt. Ltd [PAN: AAECV0871D) a company on the records of Registrar of companies, Kolkata and which has filed its financials up to 31.03.2016 as per the records; iv) the sale consideration was received on 19.11.2013 from the above company vide RTGS into my saving account no. 5221 with PNB v) the transaction was duly disclosed and incorporated in my income tax ....
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....e genuineness of this share sale transaction in view of the sale of shares of a listed company shown to have been made in physical form instead of DEMAT and to a company in Kolkata. iv) Following observations were made by the AO after making enquiries of the sale transaction of the shares shown in Return of Income. a) The confirmation letter from company to whom shares were sold was undated and on computer generated letter. b) The address of the company on confirmation letter could not be located by the postal authorities. c) Copy of the Bank Account of M/s Virat Vintrade [P] Ltd. Kolkata was not filed by the appellant. d) The company M/s Emporis Projects Ltd. whose shares were claimed to be sold....
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....saction. Therefore, Rs. 49,92,000 credited in the Bank Account of the appellant was held as unexplained cash credit u/s 68 of the Act and added to the income of the appellant." 5. Ld. CIT(A) also confirmed the said addition mainly on the ground that, firstly, the assessee has claimed to sell the share of M/s. Emporis Projects Ltd. @ Rs. 110/- per share, whereas in the Bombay Stock Exchange the quoted price of the said scrip as on 22.11.2013 was at Rs. 1.02 per share. Thus, he held that it is not a genuine share transaction; and secondly, merely because transaction was through banking channel does not prove the genuineness of the transaction and the address of the company who has remitted the amount could not be located by the postal auth....
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....tire 45000 equity shares of M/s. Emporis Projects Ltd. was sold. It was sold at the same price of Rs. 110 per share. The amount of sale consideration was credited in the bank account of assessee with Punjab National Bank on 19.11.2013 through RTGS. In support of copy of copy of bank statement which was filed before the authorities below, copy of which has been placed on the paper book before us at page 26. Further, confirmation has also been filed as admitted by the AO by the purchaser giving entire details of the purchases made by the said company. 7. Before us Ld. Counsel referring to all these documents submitted that this company still exists and is in the records of Registrar of companies, Kolkata and has been regularly filing its f....
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....vident from the physical certificate of the shares; and then how the sale of very same shares at the same rate can be held to be bogus. There is no information or material on record that the purchaser who has bought the shares has denied the transaction or there was any inquiry in the case of purchaser that why he has paid the sale price of the shares at the same rate of subscription when the listed price on the date of sale was Rs. 1.02/-. The apparent transaction fully supported by documentary evidences cannot be disbelieved merely on some hypothetical premise that why someone will buy a share at such a low price. There is no gain which has accrued to the assessee nor there any big loss, except for minor cost of indexation in computation ....