TaxTMI 
TaxTMI 
2015 (9) TMI 1753
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....ees relate to same group of assessees and are directed against the separate orders of ld. CIT(A)-I, Indore, all dated 26.03.2013 pertaining to assessment year 2004-05. Since common grounds are involved taken by the Revenue in all the appeals and the grounds taken in the cross objections by the assessee, we are disposing of all these appeals and cross objections by this common order for the sake of convenience. 2. Cross objections filed in all the appeals are time barred. The Ld. counsel for the assessee has submitted an application for condonation stating that the appeals received by the Accountant of the assessee group Shri Yadvendra Joshi, who was under the impression that since the appeals were decided in favor of the assessees on merit, no appeals were required to be filed on legal issue which was dismissed by the ld. CIT(A). To this effect, an affidavits by the Accountant is also filed in all the cross objections filed by the assessees. We have perused the record. We find that the cause is reasonable and we condone the delay in all the cross objections. 3. We are deciding first the appeal of Shri Pravin Mittal which will be binding on all the appeals of the Revenue and c....
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.... had bought total shares total 26000 shares of Hindustan Continental Limited at the price of Rs. 1.17 by account payee cheques through broker Shri Vinod Parasrampuria. Subsequently, the some shares were sold through M/s. Jai Sharefin Limited, Ahmedabad, on 17.3.2004 and 18.3.2004 at the price of Rs. 95.92 and Rs. 96.14 per share respectively. The AO has information that there were some mis-use of trading facility in some stock exchange to launder black money. Therefore, the assessee was asked to explain the reality of transaction and was asked to explain the basis of purchase price and sale price and to produce the D-mat account statement. He was asked to explain as to why the whole transaction should not be considered as a colourable device to evade taxes and bring unaccounted money in the regular books of account by the route of LTCG at lower rate at 10 % are claiming the same as exempt u/s 54F. The show cause notice was given and after giving show cause notice, the AO was of the view that transfer of shares of Hindustan Continental Limited is nothing but a made out story of introducing assessee's group unaccounted money through the guise of long term capital gains and relying up....
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....e Hon'ble High Court. Both the decisions of the Hon'ble High Court and I.T.A.T. are placed on record. After considering the overall facts of the case and relying upon the decisions of the Hon'ble I.T.A.T. and Hon'ble High Court in the case of Shri Darpan Anand, I hereby direct the AO to treat the Long Term Capital Gain in accordance with decision of I.T.A.T. in above case." 7. We have heard the rival contentions of both the parties. Looking to the facts and circumstances of the case, we find that the ld. CIT(A) has relied upon the decision of Darpan Anand vs. ACIT, in I.T.A. No. 129/Ind/2009, wherein the Tribunal has accepted that the long term capital gain on sale of shares of Hindustan Continentals limited as genuine long term capital gains and the matter went to Hon'ble High Court and High Court has also dismissed the appeal of the Department. In view of this, we dismiss the Departmental appeal on this ground. GROUND NO. 4 : 8. The short facts of the case are that there was a survey conducted in the premises of Lunkad Group of Company on 02.05.2006 and they were indulged in practicing of giving accommodation entries of share application money in unse....
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....ng officer on the basis of survey conducted by him on the business premises of Lunkad Group. 2.4.2) The assessee during the course of search assessment proceeding filed the following documents:- (i) Confirmations of unsecured loan creditors duly signed (ii) Copy of affidavit duly signed by each loan creditor (iii) the amount of loans were received through A/c payee cheques. (iv) the amount of Interest was paid on the said amount of loan by A/c payee cheques and TDS was also deducted wherever applicable. (v) all the Loan Creditor are regularly assessed to tax by the ACTT 3(1),Indore 2.4.3) The assessing officer added the said amount of loan to the income of the assessee merely for the reason that the loan creditor was not personally appeared. 2.4.4) The assessee relied on the following direct decisions :- S.No. Reference Citation 1. Metachem Industries Ltd 245 ITR 160 (MP) 2. Micro Melt (P) Ltd 177 Taxmann 35 (Guj) 3. Ram Manohar Singh 009 DTR 270 (Jab Bench) 4. S.K.Jain 002 SOT 579 (Agra Bench) 5. S.Kamaljeet Singh 147 Taxman 18 (Allahabad) 6. Ashok Pa....
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....relied upon. We found that all the necessary documentary evidence to substantiate the loan transaction have been filed by the assessee, which indicated receipt and repayment of loan, payment of interest thereon and deduction of tax at source in respect of the interest paid thereon. It appears that due to the dispute between the Department and the Lunkad Group and the writ petition filed by Lunkad Group in the High Court, assessee could not persuade the Lunkad Group to appear in person before the Department. It is also not in dispute that no incriminating document was found by Department in assessee's premises either during course of search or on subsequent inquiry suggesting any cash given by assessee to Lunkad Group in consideration of loans so taken nor receipt of any cash whenever there was repayment of loan by assessee to Lunkad Group. Under these circumstances and in the interest of justice, one more opportunity should be given to assessee for producing the loan creditor for confirming the contents of confirmation and affidavits so filed. Keeping in view incriminating documents found during the course of survey at Lunkad Group for the period 1.4.2006 to 1.5.2006 pertaining....
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....her during course of search or on subsequent inquiry suggesting any cash given by assessee to Lunkad Group in consideration of loans so taken nor receipt of any cash whenever there was repayment of loan by assessee to Lunkad Group. 2.6.4 That Hon'ble Bench in Para 20 on Page No 51 of its order has set- aside the order with a specific direction, the same is again reproduced hereunder[ 04th Line No from the bottom on Page No 52):- " Under these circumstances and in the interest of justice, one more opportunity should be given to assessee for producing the loan creditor for confirming the contents of confirmation and affidavits so filed. Keeping in view incriminating documents found during the course of survey at Lunkad Group for the period from 1.4.2006 to 1.5.2006 pertaining to the assessment year 2007-08, even though related to one month only, the Department was justified in making addition in the hands of the assessee company in the assessment year 2007-08 by disbelieving the loan transactions." 2.6.5) That from the above paras of the order of Hon'ble Tribunal, it is quite clear that though the case was set-aside for confirming the contents of co....
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....4-05 for which no documents were found and seized even during the course of survey. The assessee had filed the complete set of papers and Shri Sanjeev Lunkad director of the Lunkad group of companies also personally appeared before the Assessing officer during the set- aside proceeding and confirming the content of loan confirmation and affidavit. The loan as taken from Lunkad group of companies were duly accepted as genuine in all the cases of Narmada. 'Extrusions Limited and Individual family members of Mittal group which includes , assessee also. Thus, the said issue now stand settled in favour of the assessee. 2.9] That in view of the above , following the directions of the Hon'ble ITAT and set-aside order as passed in the case of the assessee itself, the amount of loan as received by the assessee from Lunkad group of companies now requires to be accepted. It is therefore submitted that addition of Rs 6,00,000/ - made to the income of the assessee u/s 68 of the Income Tax Act is deleted." 10. We have heard the rival contentions of both the parties. Looking to the facts and circumstances of the case, we find that the CIT(A) in his order has deleted the additi....