TaxTMI 
TaxTMI 
2024 (8) TMI 633
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....etitioner and learned Senior Standing Counsel Mr. Varun K. Patel for the respondent no. 1. 2. Rule returnable forthwith. Learned Senior Standing Counsel Mr. Varun K. Patel waives service of notice of rule on behalf of respondents. 3. Learned Senior Standing Counsel Mr. Varun Patel has tendered the affidavits on behalf of the respondent no. 2, pursuant to the order dated 24.07.2024, one of the affidavit is filed by the Additional Commissioner of Income Tax Range-2(1)-Ahmedabad and another is filed by the Additional Commissioner of Income Tax(Audit) Ahmedabad, who were holding the charge of Joint Commissioner of Income Tax, Range-2 (1)-Ahmedabad at the relevant time. 4. Learned advocate Mr. Patel referring the to averments made in th....
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....ns which are not carrying out any genuine business activity. These concerns are involved into activity of providing accommodation entries of various kinds such as bogus Long Term Capital Gain/loss or Short-Term Capital Gain/Loss, Unsecured Loans, Share Premium, Bogus Gains, Contrived Losses etc. On perusal of information so received from Investigation Wing, Ahmedabad, it is noticed that the assessee Shah Mohitbhai Somchand (HUF) (AADHS3845Q) is one of the beneficiaries who has availed/obtained accommodation entries to the tune of Rs. 6,53,36,784/- from Kaushal Limited (AABCK7885P) under various head such as bogus Long Term Capital Gain/loss or Short Term Capital Gain/Loss, Unsecured Loans, Share Premium, Bogus Gains, Contrived Loss....
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....Rs. 6,40,19,689/- consisting of Short Term Capital Gains of Rs. 4,91,74,232/- and Long Term Capital Gains of Rs. 1,48,45,457/- was made in the total income of the petitioner as income from other sources. 10. It was pointed out that the Assessing Officer has observed as under for making the addition: "7. In view of the facts and circumstances discussed supra and circumstantial evidence available on record, it has been concluded that the share transactions in the scrip Kushal Tradelink Ltd. were sham transactions and aimed only to bring unaccounted money in the guise of capital gains and paperwork has been got up and done merely to give a colour of authenticity to the transaction and by creating a facade of legitimate transactions....
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....opies of the contract notes, as against the overwhelming evidences collected by the Revenue regarding the operation of the entire affairs of the assessee, (2) The earnings @ 491% over a period of 5 months from the date of allotment was beyond human probability and defied business logic of any business enterprise dealing with share transactions etc.. (3) the net worth of company as also the brokers who co-ordinated the transactions were also unknown to the assessee; Lastly, observes that "Cressanda Solutions Ltd. was in fact identified by the Bombay Stock Exchange as a penny stock being used for obtaining bogus Long Term Capital Gain.NO evidence of actual sale except the contract notes issued by the share broker we....