2022 (10) TMI 336

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.... unjustified in holding action initiated u/s 147 by the AO is legal and doesn't suffer from any irregularities or illegality. 2. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in holding that action u/s 147 has been rightly and legally taken. 3. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in holding that Long Term capital Gain on sale of shares of Rs 40,47,573/- was a bogus transactions and was only an accommodation entry. 4. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in holding that the transactions relating to sale and purchase of shares r....

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....0 20,32,312/- 10.12.2009   TOTAL 30,000   20,32,312/-   5. Payments for the aforesaid purchases were made to broker through assessee's bank account. The assessee further purchased following shares after sub-Division of Face Value: S. No. Purchase Date Qnty (No. of shares) Price Amount (Rs.) Date of Payment through Bank 1 29.12.2010 8,112 14.81 1,20,185/- 29.12.2010 2 16.02.2011 10,000 18.76 1,87,606/- 18.02.2011   TOTAL 18,112 33.57 3,07,791/-   6. Post sub-division total number of shares including purchased becomes 3,18,112 shares. The assessee sold following shares of GCML on Bombay Stock Exchange in lots on diffe....

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.... The AO has also theorized that the prices of the shares are manipulated at 20 to 25 times of the face value. The AO has also held that the operators rig the price of these stocks and gradually rise its price many times, often 500 to 1000 times. Hence, he had reasons to believe that it is a fit case to issue notice u/s 148. 9. Before us, a number of arguments have been taken up with regard to purchase and sale of the shares, the nature of the investor, the regular business of the assessee, objections of the reopening, detailed arguments with regard to invocation to Section 68, discharge of onus, non-confrontation of the material relied upon by the AO to make the additions, the issue of preponderance of probability relied upon by the reve....

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....SEBI in Global Capital Market Ltd. shares whereas the revenue could not prove to the fact that such enquiries were indeed conducted by SEBI. • The assessee is also found to have purchase shares at Rs.18.76 and sold at Rs.18.47 and some scrips purchased at Rs.14.81 and sold at Rs.18.71 shows the regularity of transactions and earning of profits and incurring of losses as well. • No enquiries have been conducted by the Assessing Officer before issue of the notice u/s 148. 12. Thus, we find that there has been no independent application of mind by the Assessing Officer and the satisfaction is completely based on the input by the Investigation Wing. The facts have not been correlated and there is no linkage between ....