TaxTMI 
TaxTMI 
2024 (3) TMI 607
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....ioner of Income Tax (Appeals)-2, Panaji ['the CIT(A)'] dated 04.10.2019 respectively. 2. Since the identical facts and common issues are involved in all the above seven appeals of the different assessees, we proceed to dispose of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal of the assessee in IT(SS)A No.02/PAN/2019 for the assessment year 2013-14 are stated herein. IT(SS)A No.02/PAN/2019, A.Y. 2013-14 : 4. Briefly, the facts of the case are that the appellant is an individual deriving income under the head "salary" and income under the head "other sources". The Return of Income for the assessment year 2013-14 was filed on 28.03.2014 disclosing total income of Rs. 14,....
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....ficer brought to tax the sale proceeds of the shares as unexplained cash credit and completed the assessment. 5. Being aggrieved by the order of assessment, an appeal was filed before the ld. CIT(A) contending that the assessee had proved the genuineness of the transactions of purchase and sales of shares. However, the ld. CIT(A) had confirmed the action of the Assessing Officer invoking the doctrine of test of human probability. 6. Being aggrieved by the decision of the ld. CIT(A), the appellant is in appeal before us in the present appeal. 7. When the matter was called on for hearing, none appeared on behalf of the appellant-assessee despite due service of notice of hearing. 8. Since the issue in the present appeal is no more ....
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....ary of accommodation entries or long term capital gains from Calcutta Entry Provider, namely, Shri Anil Kr. Khemka, who is an operator of M/s. Turbotech Engineering Ltd.. The Investigation Wing of the Income Tax Department, Calcutta had conducted search and seizure operations on the said entry provider and recorded the statement, wherein, it is stated that he had admitted to have provided the accommodation entries in respect of scrips as per list which includes the company M/s. Corporate Commodity Broker Pvt. Ltd.. He further stated to have been admitted that the companies controlled by him one paper companies which were used for giving accommodation entries and list of the companies was also provided and the said companies were managed/ope....
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....e to the decisions of Hon'ble Madras High Court in the case of CIT vs. Manish D. Jain, 120 taxmann.com 180 (Mad.) and PCIT vs. Prabha Jain, 439 ITR 304 (Mad.) had confirmed the action of the Assessing Officer by holding that the Assessing Officer had cogently brought out the factual scenario to establish machinations of fraudulent, manipulative and deceptive dealings and how the stock exchanges system was misused to generate bogus LTCG. 11. There is yet one more reason as to why we are inclined to confirm the addition made by Assessing Officer, in view of the well settled principle of law that fraud vitiate everything and even principle of natural justice have no application and such transaction is void ab initio. The Hon'ble Supreme Cou....
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....n est in the eyes of law. Such a judgment/decree - by the first court or by the highest court - has to be treated as a nullity by every court, whether superior or inferior. It can be challenged in any court even in collateral proceedings." 21. In the said case it was clearly stated that the courts of law are meant for imparting justice between the parties and one who comes to the court, must come with clean hands. A person whose case is based on falsehood has no right to approach the Court. A litigant who approaches the court, is bound to produce all the documents executed by him which are relevant to the litigation. If a vital document is withheld in order to gain advantage on the other side he would be guilty of playing ....
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....aking recourse to fraud should not be enabled to enjoy the fruits thereof." 12. In the present case also, the appellant deliberately withheld the information from the Assessing Officer as well as the ld. CIT(A) which is within exclusive knowledge of appellant to establish the genuineness of transactions of purchase of shares of that company. It is nothing but a fraud played by the appellant against the Assessing Officer as well as the ld. CIT(A) who are quasi judicial authorities employed for execution of the provisions of the Income Tax Act. Therefore, the principle of fraud can be squarely applied to the facts of the present case and principles of natural justice have no application. Applying the said doctrine, we have no hesitation to....