TaxTMI 
TaxTMI 
2025 (4) TMI 87
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....ght to have finalized the assessment on actual facts and merits. Erred in considering facts of the case, the appellant had purchased shares of Transcend Commerce Limited through private placement which was later on merged with SRK Industries Ltd Also, the sales of shares was through proper demat account and the assessee has produced all the documentary evidences such as contract notes, broker ledger, demat statement global report etc. and all payments and receipts for acquiring & selling the shares were made properly through the banking channel The Ld AO has erred in appreciating the facts that mere statements given and recorded by some persons claiming that the shares prices are rigged and that the said company is providing bogus entries for LTCG/STCL, etc. cannot be the basis to justify the bogusness of all the shareholders of the said company. The Ld AO failed to prove that the transaction carried out was a sham without bringing relevant corroborative and credible material, on record and making the impugned addition The Ld AO erred in finalizing the said assessment order by adding the income on mere statement of few people on record without appreciating the fact that no....
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.... Entertainment Pvt. Ltd in the name of the Appellant for the above purchase. [Pg. 1 of paperbook] 06.06.2012 6,000 eq. shares of Transcend Commerce Limited were credited to the DEMAT account [Pg. 9 of paperbook] 16.05.2013 Transcend Commerce Limited was amalgamated with SRK Industries Limited whereby the swap ration was 1:2.22 and allotment letter dated 20.05.2013 was issued [Pg. 6 of paperbook] 17.05.2013 Pursuant to the scheme of amalgamation, the Appellant received 13,320 eq. shares of SRK Industries Limited [Pg. 7 of paperbook] 14.08.2013 Appellant sold 1,000 eq, shares of SRK Industries Limited through recognized stock exchange. [Pg. 13 & 9 of paperbook] Rs. 3,44,913 16.08.2013 Appellant sold 1,500 eq. shares of SRK Industries Limited through recognized stock exchange. [Pg. 11 & 9 of paperbook] Rs. 5,14,915 26.08.2013 Appellant sold 6,000 eq. shares of SRK Industries Limited through recognized stock exchange. [Pg. 10 & 9 of paperbook] Rs. 20,06,020 01.10.2013 Appellant sold 4,820 eq. shares of SRK Industries Limited through recognized stock exchange. [Pg. 12 & 9 of paperbook) Rs. 16,46,050 Long Term....
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....oting that before drawing adverse conclusion, ld. Assessing Officer deliberated on the general modus operandi of such transactions as well as background of the investigation carried out by the wing, without pinpointing anything specific towards assessee, in this regard. 4.2. Ld. Assessing Officer, thus completed the assessment by making an addition u/s 68 of the Act towards entire sale consideration of Rs. 45,21,595/- received by the assessee on the transaction of sale of shares in the aforesaid scrip. Ld. Assessing Officer also estimated unexplained expenditure towards commission @ 2% of the sale proceeds to make an addition of Rs. 90,432/- u/s. 69C of the Act. Aggrieved, assessee went in appeal before the ld. CIT(A), who upheld the same. 5. Before us, ld. Counsel for the assessee has reiterated the submissions made before the authorities below. He has also placed on record all the relevant documents and evidences in the form of paper book, details of which are already noted above, backed by judicial precedents of the Hon'ble jurisdictional High Court of Bombay. The submissions so made are not reiterated to avoid duplicity. Ld. Counsel for the assessee has placed on record h....
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....in the business of providing entries for bogus capital gains. The conclusion drawn by the ld. Assessing Officer of implicating the assessee is un-supported by any cogent material on record. The finding arrived at by the ld. Assessing Officer is thus purely an assumption based on conjectures and surmises. In our thoughtful considerations to the facts and circumstances of the case, it is not in controversy that assessee has discharged her burden by submitting the relevant documents, details of which are already extracted above, forming part of the paper book. 7.1. For our observations and findings, we place reliance on the decision in the case of CIT vs. Jamnadevi Agrawal [2012] 20 taxmann.com 529 (Bom), wherein it was held that transactions of purchase and sale of shares cannot be considered to be bogus, when the documentary evidences furnished by the assessee establish genuineness of the claim. We also draw our force from the decision of Hon'ble High Court of Delhi in the case of PCIT v. Krishna Devi [2021] 126 taxmann.com 80 (Del) wherein the Hon'ble Court noticed that the reasoning given by the Assessing Officer to disbelieve the capital gain declared by the assessee, viz. ast....
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....ing question of law is proposed: "Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal was justified in deleting the addition of Rs. 1,03,33,925/- made by AO u/s 68 of the I.T. Act, 1961, ignoring the fact that the shares were bought/acquired from off market sources and thereafter the same was DMATed and registered in stock exchange and increase in share price of Ramkrishna Fincap Ltd. is not supported by the financials and, therefore, the amount of LTCG of Rs. 1,03,33,925/- claimed by the assessee is nothing but unaccounted income which was rightly added u/s 68 of the I. T. Act, 1961?" 2. We have considered the impugned order with the assistance of the learned Counsels and we have no reason to interfere. There is a finding of fact by the Tribunal that the transaction of purchase and sale of the shares of the alleged penny stock of shares of Ramkrishna Fincap Ltd. ("RFL") is done through stock exchange and through the registered Stock Brokers. The payments have been made through banking channels and even Security Transaction Tax ("STT") has also been paid. The Assessing Officer also has not criticized the documentation inv....