TaxTMI 
TaxTMI 
2024 (4) TMI 263
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....vidual deriving income from salary and other sources. The return of income for the Asst Year 2015-16 was filed by the assesse on 28.8.2015 declaring total income of Rs 6,60,930/-. The assessee purchased 12500 equity shares of CCL International Ltd on 22.8.2011 for Rs 1,25,000/- in off market through a stock broker M/s Narayan Securities in cash. These shares carried a face value of Rs 2 per share and assessee bought the same at Rs 10 per share. The payment for the same was made out of disclosed sources of income by the assessee. Thereafter the Registrar and Transfer Agent (RTA) M/s Alankit Assignment Limited transferred the shares in the name of the assessee. The share certificates for the said purchase duly effecting the share transfer in assessee's name was also carried out as under:- Distinctive Nos. of Shares Certificate No. No. of Share Name of the original holder From To 335001 337500 1135 2500 Hasina Khatoon 7501 10000 1004 2500 Subhash 210001 212500 1085 2500 Shyam Chandra Jha 482501 485000 1194 2500 Urwashi 15001 17500 1007 2500 Rawat Lal Singh 12500 3.1. After effecting the share transfer in assessee's name ....
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....iling market prices on various dates. The shares were sold at Rs 479.52 , Rs 496.403, Rs 578.271, Rs 585.21, Rs 592.407, Rs 598.401 and Rs 488.511 per share on various dates during the year under consideration. 3.3. After selling 9500 shares during the year under consideration, the assessee held remaining 3000 shares in his demat account. The ld. AO wrongly stated that the assessee had sold these 3000 shares on 8.12.2015 relevant to Asst Year 2016- 17. Actually no sale was made by the assessee on 8.12.2015 and these shares were consolidated on 8.12.2015 by the company in the ratio of 5:1 and accordingly assessee was holding 600 shares in his demat account (3000/5=600) as on 28.9.2016. 3.4. The ld. AO observed in para 2.10. in page 24 of his order that the assessee was not produced before him for examination. In this regard, we find that the Chartered Accountant of the assessee vide letter dated 3.11.2017 enclosed in page 69 of the Paper Book had filed a letter before the ld. AO that he was busy in filing income tax returns and accordingly could not produce the assessee for examination physically upto 7.11.2017 and it was requested before the ld. AO to fix the date on any date aft....
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....t Year Income Returned Income Assessed Order u/s Date of Order Page No. of PB 2011-12 247270/- 289526/- 143(3) 28.2.2014 86 & 87 2012-13 7115100/- 7115100/- 143(3) 4.3.2015 88 & 89 2013-14 15775370/- 15846584/- 143(3) 22.2.2016 90 & 91 2014-15 9101530/- 9243927/- 143(3) 21.12.2016 92 & 92A 2015-16 9533430/- 9913390/- 143(3) 16.5.2017 93 to 95 3.7. The aforesaid scrutiny income tax assessment orders clearly go to prove that the said company i.e. CCL International Ltd cannot be construed as a shell company or a penny stock company as alleged by the lower authorities. On the contrary, the said company is regularly carrying on its business deriving income thereon regularly from both Government and Private Sector. Hence the entire allegations leveled by the revenue qua this company falls flat. We find that the ld. AO had not found any material against this company CCL International Ltd. There is no allegation / statement of any party regarding the said company giving any adverse remarks on the ground that the said company"s share prices were artificially manipulated in the stock market. No action has been taken by Securities Exchange Board of India (S....
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....14 Rakesh Gupta (HUF) 17,20,000/- 24.3.2015 Ankita Garg 2,20,000/- 24.3.2015 Ankita Garg 7,00,000/- 25.3.2015 Ankita Garg 3,00,000/- TOTAL 29,56,000/- 4.2. The assessee was asked to explain the three necessary ingredients of section 68 of the Act i.e. identity of the lender, creditworthiness of the lender and genuineness of the transactions, in respect of the aforesaid loan creditors. The observations of the ld. AO in this regard are as under:- "(i) No explanation was furnished with regard to deposits of Rs. 16,000/- obtained from shri Kapil Gupta. Therefore, the sum of Rs. 16,000/- is held unexplained cash credit, and added under section 68 of I.T. Act, 1961." (ii)....... (iii) Regarding loan from Shri Rakesh Gupta, HUF the assessee filed copy of bank account, confirmed copy of account and ITR acknowledgement. Perusal of his bank account revealed that prior to advancement of loan of Rs. 17,20,000/- to the assessee on 29.10.2014 there were credits in his bank account of Rs. 12,16,314.18 and Rs. 5,00,000. The source of credit of Rs. 12,16,314.18 on 1.10.2014 by way of RTGS from M/s Trustline Securities Ltd. which is the same agency/broker from whom the as....
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....old ; whether the gains thereon are short term or long term capital gain or loss ; whether STT was suffered on that transaction ; how many shares were sold. Absent all these basic details, the nature and source of credit of Rakesh Gupta (HUF) being sale proceeds of shares received from Trustline Securities Ltd (a registered share broker with SEBI) cannot be doubted. Even if the amounts received by Rakesh Gupta (HUF) from Trustline Securities Ltd is treated as income in the hands of Rakesh Gupta (HUF), still it becomes a valid source for the HUF to advance loan to the assessee herein. Hence creditworthiness of Rakesh Gupta (HUF) is proved beyond reasonable doubt i.e loan was advanced to the assessee out of sale proceeds of shares by Rakesh Gupta (HUF). Hence the said loan is to be treated as genuine. Apart from this, the assessee on its part had furnished confirmation from the lender, bank statement of the lender and income tax return acknowledgement of the lender. All the loan transactions were routed through regular banking channels. It is also pertinent to note that assessee had also received another loan of Rs 2,50,000/- from the very same lender Rakesh Gupta (HUF) on 30.12.2014....