TaxTMI 
TaxTMI 
2023 (7) TMI 804
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....acts and circumstances of the case. Thus, the order dated 01.12.2022 passed by Ld. CIT(A) is bad in law and the same may be quashed. 2. Appellate Order passed without providing the Appellant an appropriate opportunity of being heard is bad in law i. The Ld. CIT(A) erred in passing the impugned order dated 01.12.2022 under section 250 of the Act without providing the Appellant an appropriate opportunity of being heard through physical / video conferencing inspite of specific request made by the Appellant during the course of appellate proceedings. Thus, the impugned appellate order is passed in gross violation of principles of natural justice and the same may be quashed and set aside. 3. Addition by treating the term capital gain as unexplained investment under section 68 of the Act unjustified - Rs. 89.06.550/- i. The Ld. CIT(A) erred in upholding the action of Ld. A.O. in making addition of Rs. 89,06,550/- treating the long-term capital gain as unexplained cash Gen credit under section 68 of the Act without appreciating the fact and circumstances of the case in proper perspective. Hence, the addition of Rs. 89,06,550/- under section 68 of the Act is unjustified and the sam....
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....n filed by the assessee was selected for scrutiny and statutory notices under section 143(2) as well as section 142(1) of the Act were issued and served on the assessee. During the year, the assessee has shown exempted long-term capital gain of Rs. 86,03,271, in the return of income filed by her on the sale of scrips of M/s Sunrise Asian Ltd. During the assessment proceedings, the Assessing Officer ("AO") considered the information received from the Investigation Wing as well as the statement recorded, during the course of survey and search proceedings, of Mr. Vipul Vidur Bhatt, who has admitted to having controlled the affairs of M/s Sunrise Asian Ltd and also admitted to the fact that the scrips have been used of providing accommodation entries of bogus long term capital gain. The AO also took into consideration the trade data downloaded from the system that shares of M/s Sunrise Asian Ltd sold by the assessee have been picked up by the entities who are mostly entities of Mr. Vipul Vidur Bhatt and their names figure in the list of entities divulged by him before the investigation authorities. The AO also took into consideration the statement of the assessee, her father-in-law, an....
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....nvestment in a span of 2 years, which clearly defies all the establish economic factors and laws. In order to ascertain the genuineness of the transaction and also understand the rationale behind the decision-making ability and understanding of share trading, summons under section 131 of the Act were issued to the assessee. In response thereto, the assessee filed a letter in the office requesting to treat the statement recorded by the preceding officer as a statement given in response to the aforesaid summons. From the statements, the AO noted that the assessee does not have any knowledge about the share market and she has never made any investments in any of the shares directly and her father-in-law has made investments in the shares on behalf. Since the assessee was not aware of the investments in M/s Sunrise Asian Ltd. and is dependent upon the investment decision of her father-in-law, therefore, in order to ascertain the genuineness of the investments, summons under section 131 of the Act were issued to her father-in-law and the statement was recorded on the same day itself. From the statement of the father-in-law, the AO observed that he has also acted on the advice of one Mr.....
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....oted on page 29 of the assessment order, is reproduced as under:- "Q.22 Please explain in detail the entire modus operandi of providing bogus long term accommodation entry in scripts of M/s. Sunrise Asian Limited. Ans. Sir, I acquired M/s. Sunrise Asian Limited from one Shri Vijay Bhalti during 2010-11, which was listed on BSE, however, the trading in the scripts was suspended by BSE. I had acquired this company for providing accommodation entries of bogus LTCG. After the acquisition. I got the company suspension revoked. Thereafter, I managed the amalgamation of two companies with Sunrise Asian Limited viz (1) M/s. Santoshima Tradelink Limited and (II) Conart Traders limited. Thereafter, the beneficiaries of bogus LTCG accommodation entries were allotted shares of (i) Santoshima Tradelink Limited (Formerly known as M/s. Santoshima Lease Finance and Investment (India) Limited) and (II) M/s. Conart Traders Limited on preferential basis, and thereafter, share holders of these companies were allotted shares of M/s. Sunrise Asian Limited in swap ratio of 1:1. Once this amalgamation was done, the price of the shares of M/s. Sunrise Asian Limited was rigged and increased through circ....
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....y person controlling and managing the affairs of M/s Sunrise Asian Ltd. Further, the AO has also examined the statements of assessee's father-in-law and other individuals on whose alleged advice shares in M/s Sunrise Asian Ltd. were purchased by the assessee. 10. During the hearing, the learned Authorised Representative ("learned AR") submitted that the learned CIT(A), NFAC passed the impugned order without providing an opportunity of being heard through physical/video conferencing to the assessee. From the perusal of the impugned order, we find that the learned CIT(A), NFAC has taken due note of the detailed written submissions filed by the assessee on 23/11/2022, which have been reproduced in the impugned order from pages 3-10. During the hearing, the learned AR also placed on record another written submission dated 28/09/2022 filed by the assessee before the learned CIT(A), NFAC, wherein the assessee made detailed submissions against the additions made by the AO. We find from the submission dated 28/09/2022, that the assessee made a conditional request before the learned CIT(A), NFAC, to grant an opportunity of being heard, if in case, the learned CIT(A), NFAC, wants to take an....
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....preceding year, the assessee was granted sufficient time to cross-examine Mr. Vipul Vidur Bhatt. From the perusal of the aforesaid assessment order for the assessment year 2014-15, at the outset, we find that in the preceding year, the AO relied on a similar statement recorded of Mr. Vipul Vidur Bhatt on which reliance has been placed in the year under consideration. Therefore, when the same statement of Mr. Vipul Vidur Bhatt has been relied on in both the assessment years by the AO, we find no basis in the plea of the assessee that sufficient time was not granted for cross-examining Mr. Vipul Vidur Bhatt in the year under consideration. In any case, we find that in the preceding year, despite the grant of sufficient time to the assessee, Mr. Vipul Vidur Bhatt did not comply with the summons issued under section 131 of the Act. 12. During the hearing, the learned Departmental Representative placed reliance on the final order dated 06/09/2021, passed by the SEBI. From the perusal of the aforesaid order, we note that the SEBI had barred Sunrise Asian Ltd and other entities to whom the assessee had sold the shares from accessing the securities market or buying, selling or otherwise d....