TaxTMI 
TaxTMI 
2023 (1) TMI 1408
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....ing adjournment stating that they are engaging new counsel. We note that this appeal was filed in the year 2018 and was adjourned from time to time till today on the request made by the assessee, which is evident from docket order entries. The ld. DR submitted that the issue is covered against the assessee and prayed not to adjourn the case since it is old matter. On examination of docket order and grounds raised by the assessee in both the appeals, we find force in the arguments of ld. DR that the issues raised in the grounds of appeal are covered against the assessee and no purpose will serve in keeping the old appeal on covered matters, therefore, adjournment letters filed by the assessee in both the appeals are rejected and we proceed t....
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.... shares are transferred to the beneficiary at a very nominal price mostly off-line through preferential allotment or off-line sale. The beneficiary holds the share for one year and on its sale claims exemption u/s. 10(38) of the Act after one year. During the said period the operators rig the price of the stock and gradually rise its price many times to 500 to 1500 times. The said rig of price of the stock has been done through low volume transaction indulged in by the dummies of the operator at a pre-determined price. Further, according to the AO, when the price reaches the desired level the beneficiary who bought the shares at a nominal price, is asked to sell it to a dummy paper company of the operator. The unaccounted cash is provided b....
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....essee along with his family members vide para 6.3 of the assessment order. 9. We find a survey action was conducted on the premises of M/s. D.B. & Co., Kolkata u/s. 133A of the Act on 10-02-2015. According to the AO, the Accountant of the said company namely Shri Soumen Sen stated name of some accommodation entry provider in the form of bogus capital gain through BSE listed companies. The said Accountant further stated that the Greencrest Financial Services Limited is one of the company used for providing bogus long term capital gain to various beneficiaries. We find the statement recorded u/s. 131 of the Act during the course of survey operations is reproduced by the AO in his order from pages 13 to 17. On an examination of the same, we....
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...., it is also noted that the party/beneficiary would give cash to the entry operator company and in turn the said cash deposited in various bank accounts. Finally, the said money is transferred to beneficiaries bank account for which they get commission in cash from the said beneficiaries @.50 paisa per 100 rupees of cheque amount. Further, he also given the names of listed companies scripts in which he has provided accommodation of Long Term Capital Gain in response to Q. No. 17. On an examination of the same list at page 17 of the assessment order, we note that the Greencrest Financial Services Limited is standing at Sl. No. 6 in the said list. Therefore, it is clear the activities of entry operators in providing accommodation of Long Term....
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.... relied on the decision of Hon'ble High Court of Bombay at Nagpur Bench in the case of Sanjay Bimalchand Jain in Income Tax Appeal No. 18/2017 order dated 10-04-2017 in confirming the order of AO in making addition u/s. 68 of the Act. We find that the CIT(A) discussed the transaction in detail at Para 5.8 of the impugned order, wherein we completely agree with the reasoning recorded by the CIT(A) in holding the transaction entered by the assessee with paper companies a sham transaction and denial of exemption u/s. 10(38) of the Act is justified. The relevant portion at Para 5.8 of the impugned order is reproduced here-in-below : "5.8 The ratio laid down in the above cases, is squarely applicable to the facts of the case before me. ....
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....oubt. In the present case, the appellant has not been able to explain the adversity of circumstances narrated above. Accordingly, the transaction cannot be said to be genuine. I am therefore inclined to agree with the AO that the appellant has entered into a sham transaction. Accordingly the transactions made by the appellant resulting in humongous gains are also a sham transaction and the AO has rightly held them to be so. I therefore uphold the action of the AO in assessing Rs. 1,35,63,573/- as unexplained cash credits u/s. 68 in the hands of the appellant." 12. In the light of the above and with the discussion made by us here-in- above, we find no infirmity in the order of CIT(A) and it is justified. Thus, the grounds raised by the as....