AI Drafter 
TaxTMI 
TaxTMI 
2022 (6) TMI 1485
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....rievance raised in the instant appeal challenges correctness of both the lower authorities' action denying section 10(38) long term capital gains' exemption thereby adding the sum in issue of Rs. 1,15,53,749/- as unexplained cash credits u/s 68 of the Act. 3. We note from able assistance coming from both the parties as well as after perusing the Assessing Officer's detailed assessment order that he had declined the assessee's impugned exemption gain qua sale of shares in M/s SRK Industries Ltd. and concluded the same as bogus after examining the above-stated scrip's trading pattern, financials, P&L account as well as in light of the department's investigation wing's report indicating abnormal price movement in the stock market. Page 4 in....
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.... against the assessee to rebut correctness of the impugned long term capital gains but also the same related to the very scrip as well. She lastly relied on the assessee's detailed evidence that the department had neither rebutted correctness thereof nor the lower authorities have made available the corresponding adverse material before disallowing section 10(38) exemption in issue. 5. The Revenue has placed strong reliance on both the lower authorities' action making the impugned disallowance/addition. 6. We find no merit in the assessee's foregoing arguments. Suffice to say, the learned lower authorities hold him to here derived bogus long term capital gains in light of overwhelming material indicating lack of genuineness in the imp....
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....les Private Limited. Thereafter, PS IT I&SL declared shares split in the ratio of 1:10. The assessee sold 25000 converted shares in the year under consideration, namely, 15,000 shares on 20-11-2014 @ Rs. 76.98 per share; 10,000 shares on 18-12-2014 at Rs. 90.14 per share. The AO reproduced extract of Balance sheet and Profit and loss account of the company from March 2011 to March 2015 for demonstrating that there was negligible profit earned by PS IT I&SL, which did not justify such a huge increase in the share price. He further took note of statement of Mr. Sajjan Kedia recorded on 13-06-2014 in which he admitted to be involved in providing accommodation entries. Name of PS IT I&SL was also there in the list given by Mr. Sajjan Kedia thro....
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....nsideration at an average sale price of more than Rs. 83/- per share. In other words, the converted share of this company purchased at mere Rs. 4/- was sold after a year and few months at close to Rs. 83/- per share, giving phenomenal increase in price of more than 20 times. The AO extracted the summary of the Profit and loss account and Balance sheet of PS IT I&SL for the relevant years, which fairly indicates that there was no foundation for such a magical increase in the price of its shares. The AO has also referred to the statements of various persons, all of whom admitted to be providing accommodation entries with the help of shares of companies including PS IT I&SL. The Ministry of Corporate Affairs has identified this as a shell comp....
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....l, then the apparent should be ignored to unearth the harsh reality. 6. Similar view has been canvassed in Sumati Dayal vs. CIT (1995) 214 ITR 801 (SC). The question for consideration in that case was whether the assessee purchased winning tickets after the event. It was observed that in all cases in which a receipt is sought to be taxed as income, the burden lies on the Department to prove that it is within the taxing provision and if a receipt is in the nature of income, the burden of proving that it is not taxable because it falls within exemption provided by the Act, lies upon the assessee. But, in view of section 68, where any sum is found credited in the books of the assessee for any previous year the same may be charged to i....