TaxTMI 
TaxTMI 
2023 (9) TMI 1451
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....peals of two 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 in ITA No. 1867/PUN/2018 for the assessment year 2015-16 are stated herein. ITA No. 1867/PUN/2018, A.Y. 2015-16 : 4. Briefly, the facts of the case are that the appellant is an individual deriving income from farming and rending of house property. The Return of Income for the assessment year 2015-16 was filed on 29.09.2015 disclosing total income of Rs. 17,63,100/-. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-4, Ichalkaranji ('the Assessing Officer') vide order dated 15.12.2017 passed u/s 143(3) of the Income Tax A....
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....ansactions 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. The ld. AR submitted that the ld. CIT(A) ought not to have confirmed the addition of Rs. 2,98,95,128/-made by the Assessing Officer u/s 68 of the Act without considering the submissions of the assessee as well as without giving reasonable opportunity to rebut the case of the assessee. 8. The ld. Sr. DR placed reliance on the order of the ld. CIT(A) submits that in view of the decision of the Hon'ble Calcutta High Court in the case of PCIT vs. Swati Baj....
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....accommodation entries in respect of scrips as per list which includes the company Greencrest Financial Services Limited. He further stated to have been admitted that the companies controlled by him are paper companies which were used for giving accommodation entries and list of the companies was also provided and the said companies were managed/operated by Shri Soumen Sen. The investigation report of the Income Tax Department was available in the public domain and also narrated the modus operandi adopted for the purpose of claiming the bogus long term capital gains. During the course of assessment proceedings, the Assessing Officer had called upon to substantiate the genuineness of the transactions of purchase and sale of shares in the ligh....
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....ges system was misused to generate bogus LTCG. 10. 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 Court in the case of Friends Trading Co. vs. Union of India in Civil Appeal No. 5608 of 2011 vide order dated 23.09.2022 held in the context of availment of alleged forged DEPB under the Customs Act, wherein, it was found DEPB licenses were forged and it was held that the exemption benefit availed on such forged DEPB are void ab initio on the principle that fraud vitiate everything and the pe....
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....me 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 fraud on court as well as on the opposite party. 22. In Smt. Shrist Dhawan v. M/s. Shaw Brothers [AIR 1992 SC 1555] it has been opined that fraud and collusion vitiate even the most solemn proceedings in any civilised system of jurisprudence. It has been defined as an act of trickery or deceit. The aforesaid principle has been reiterated in Roshan Deen v. Preeti Lal [AIR 2002 SC 33], Ram Preeti Yadav v. U. P. ....
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....d. 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 hold that the transaction of purchase and sale of shares of Greencrest Financial Services Limited under consideration before us is void ab-initio, this is nothing but sham, make believe and colourful device adopted with excellent paper work with intention bringing the undisclosed income into books of account. The decision of the Hon'ble Bombay High Court in the case of PCIT vs. Indravadan Jain, HUF in Income Tax Appeal No. 454 of 2018....