TaxTMI 
TaxTMI 
2022 (5) TMI 1324
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....e taken up together for adjudication and are decided by this common order. 2. For the sake of convenience these appeals are decided in seriatim of Assessment Years. The facts are narrated from the appeal in ITA No. 7067/Mum/2019 for Assessment Year 2007-08. ITA No.7067/Mum/2019 A.Y. - 2007-08: 3. The brief facts of the case as emanating from records are: The assessee had filed her return of income for the impugned assessment year on 24/10/2007 declaring total income of Rs.1,57,730/-. During the period relevant to the assessment year under appeal the assessee had sold shares of M/s. Buniyad Chemicals Ltd.. The gain on sale said shares were declared as long term capital gain in the return of income The original return of the assessee....
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....earch and seizure action u/s. 132 of the Act was undertaken in the case of M/s. Mahasagar Securities Pvt. Ltd. by Investigation Wing on 25/11/2009. During the course of search, statement of Mukesh Choksi was purportedly recorded. On the basis of the said statement, the assessment for impugned Assessment Year in the case of assessee was reopened. During re-assessment proceedings it was alleged that since the assessee has failed to furnish proof of purchase of share of Buniyad Chemicals and that the said shares were sold through broker M/s. Alliance Intermediaries and Network Pvt. Ltd. whose registration was cancelled on 19/02/2004 the transaction of sale of said shares is not genuine. The ld. Authorized Representative for the assessee pointe....
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....Book. As per the said statement the assessee was holding 32000 equity shares of Buniyad Chemicals. The ld. Authorized Representative for the assessee further referred to the Demat account statement for the period 01/06/2005 to 30/06/2005 at page 10 of the Paper Book wherein again as per the statement, the assessee was holding 32000 equity shares of Buniyad Chemicals. The ld. Authorized Representative for the assessee pointed that during the period relevant to the assessment year under appeal, the assessee had sold 8500 shares of Buniyad Chemicals. The said transaction of sale of shares is reflected in D-mat account statement for the period 01/08/2006 to 31/08/2006. The said shares were sold by the assessee through M/s. Alliance Intermediari....
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....come tax return. The ld. Authorized Representative for the assessee further pointed that in the period relevant to Assessment Year 2006-07, the assessee had sold shares of Buniyad Chemicals through M/s. Mahasagar Securities Pvt. Ltd. The assessee disclosed the income as long term capital gain, exempt from tax. The Assessing Officer disallowed assessee's claim. In first appellate proceedings the relief was granted by the CIT(A) accepting assessee's contention and deleted the addition. The ld. Authorized Representative for the assessee furnished copy of order of the CIT(A) -26, Mumbai dated 23/09/2019 for the Assessment Year 2006-07. 4. Per contra, Shri R.A. Dhyani representing the Department vehemently defended the impugned order. The ....
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....s of Buniyad Chemicals through M/s. Alliance Intermediaries and Network Pvt. Ltd., one of associate companies of Mukesh Choksi group. The assessee had purportedly purchased shares of Buniyad Chemicals in 2001. However, no documentary evidence was furnished by the assesseea to substantiate that the shares were purchased in the year 2001. It is relevant to mention here that the shares of Buniyad Chemicals were held by the assessee in Demat form and they were duly reflected in D-mat account statement of the assessee for the period 01/09/2004 to 30/09/2004 (at page 9 of the Paper Book). An examination of Demat account statement of assessee clearly indicate that the assessee was having 32000 shares of Buniyad Chemicals as on 01/09/2004. Thus, it....
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.... view would not make the transaction of sale of shares bogus. By furnishing cogent evidence, assessee has discharged her onus in proving that she was holding the shares since 2004 and had sold the shares during the relevant period. The Revenue has neither controverted nor rejected the Demat account statement of the assessee. 7. After examining the documents on record, I find merit in the appeal of assessee. The addition of Rs. 5,03,622/- made by the Assessing Officer by treating capital gain on sale of shares as income from other sources is directed to be deleted. 8. In the result, findings of the CIT(A) on this issue are set aside and appeal of the assessee is allowed. ITA NO.7068/MUM/2019(A.Y 2008-09)& ITA NO.7069/MUM/2019(A.Y....