TaxTMI 
TaxTMI 
2022 (10) TMI 336
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.... 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 resulted in bogus Long Term capital Gain and was a sham transaction....
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....id 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 different dates after holding them for more than 15 months on payment of STT: S.No. Date of Sale (Sold in FY 2010-11) Qnty (No. of shares) Price Amount (Rs.) STCG/LTCG Perio....
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....ns 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 revenue to treat the transactions as non-genuine, non-conducting of any enquiry by SEBI and non-implicating of the said shares or broker by SEBI etc. 10. On the other hand, the ld. DR has succinctly relied upon the report of the revenue, investigations conducted at Calc....
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....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 the documents received, sum of the quantity of shares purchased, sum of the trade value as alleged and sum of the quantity of shares purchased, sum of the quantity as entered by the assessee. The AO held that the sum of the trade value of sale was Rs.66.01 lacs whereas the sum of the trade value of sale was only Rs.40.08 lacs. Similarly, the sum of the purcha....