TaxTMI 
TaxTMI 
2025 (4) TMI 263
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....e heard together and are adjudicated by this common order. ITA No.4647/Mum/2023 is taken as the lead case. The assessee has taken the following grounds: - ITA No.4647/Mum/2023: "1. ON NATURAL JUSTICE: 1.1. In the facts and circumstances of the case and in law the Learned Commissioner of Income Tax (Appeals) ["the Ld. CIT(A)"] erred in confirming the action of the Learned Assessing Officer ["the Ld. AO"] who in turn made huge additions to the returned income and passed the Assessment order in gross violation of principles of natural justice. 2. In the facts and circumstances of the case and in law the order passed by the Ld. CIT(A) deserves to be quashed for being passed in gross violation of principles of natural justice and also being based on extraneous considerations while ignoring the relevant, material, considerations and submissions made by the Appellant. 2.ON VALIDITY OF THE PROCEEDINGS 2.1 In the facts and circumstances of the case and in law, the Assessment orderpassedby the Ld. AO and affirmed by the Ld. CIT(A) is bad in law, voidand deserves to be quashed since the same is passed in violation of the extant law and judicial precedents in this regard. 3. ON M....
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....arket and earning income from business, capital gains and Income from other sources. During the impugned assessment year, the assessee earned long term capital gains of trading the scrip, M/s PSIT Infra & Services Ltd and claimed exemption under section 10(38) of the Act, in the return of income filed under section 139(1) of the Act. The assessee purchased the share of Rs.50,000/- and sold the share in the value of Rs.26,78,632/- through stock exchange in both the transactions. Bu the Ld.AO has treated this transaction as bogus capital gain and added back the same under section 68 of the Act. Further, for the bogus transaction, the Ld.AO calculated the commission expenses amount ofRs.80,359/- which was added back with the total income of the assessee. The aggrieved assessee filed an appeal before the ld. CIT(A). The Ld.CIT(A) upheld the assessment order. Being aggrieved on the appeal order, the assessee filed an appeal before us. 4. The Ld.AR argued and filed a written submission which is kept in the record. The Ld.AR confirmed that the assessee has transacted the shares of M/s PSIT Infra & Services Ltd in impugned assessment year. The assessee argued that the holding period of sh....
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....12/07/2013 and a public share holding amounted to 97.56 % of tool share capital held amongst 225-4share holders as on 31/03/2014 as per record on BSE Copy is enclosed. On these facts it cannot be said that the company is controlled as a closely held co by promoters and operators. The allegation of price rigging is mere assumption, presumption, surmises and suspicious as no action is taken either by regulatory authority SEBI or TheStock Exchange for manipulation of price against the company or brokers. (3) In this Para statistical detail is given in relation to investigation for which no reply is required. However, it is mentioned in example that bank account there would be a cheque deposit of RS 50,00,000 paid by the paper company that buys the shares is not correct as much as per system seller received payment through share broker who in turn received amount from clearing house of stock exchange in aggregate for days's transactions as netted. 4.4) As reported earlier till date there is no action from Seal or BSE in case of the companyM/S FS IT Infra & Services Ltd. 5) M/S PS IT Infra and Services LTD 5.1) In this Para it is alleged that our client is not at all acquainta....
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....re, the statement that beneficiary hold shares for one year as per statutory period prescribed u/s 10(38) is not applicable in this case. Though, it may create suspicious but, no shelter can be taken under general information to fasten any liability by disbelieving the transaction unless there is specific and cogent evidence to that effect. 7. He argued and mentioned about rigging of price by operators and it is alleged that operators are rigging price to desire level in case of controlled company, but it is stated that it is mere allegation and suspicious in general and not specifically applicable to the company M/S PSIT infra & Services Ltd. In the aforesaid company there was a public shareholding amounted to Date as on Public holding no of entity Total % of share capital held by public 26/06/2012 473 25 31/12/2012 530 99.98 31/03/2013 543 99.98 31/06/2013 547 99.98 31/09/2013 1822 80.23 31/12/2013 2283 91.27 31/03/2014 2254 97.86 30/06/2014 2079 98.06 30/09/2014 2034 98.06 31/12/2014 1937 98.06 The above details are as per record on BSE supplied by the ld. AR. It cannot be said even by stretch of imagination that the company is controlled and m....
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....BI's investigation did not find any adverse evidence against them to show any connection/nexus with PAL or its Promoters/Directors or Promoter related entities or any role in price manipulation volume manipulation in the scrip of PAL. Hence, violation of provisions of SEBI Act, SCRA, PFUTP Regulations, etc., were not observed in respect of the following 114 entities." 10.It is alleged that the assessee is not at all acquaintance with share market or in absence of any regular share trading therefore, it is assumed and presumed that the decision of purchase of 20000 shares of M/S Swift IT infrastructure and services Ltd (Amalgamated with M/S ParagShilpa Investment Ltd) is a predetermined move which had sole aim to bring back unaccounted money. The aforesaid allegation is baseless and absolutely incorrect as clearly revealed from the following facts mentioned in the tabular form and are very much on the record of the department. Sr.No. Assessment Year Investment in shares (Rupees) Dividend LTCG (LTCL) STCG (STCL) Speculation Profit /(loss) Share Trading Profit / (Loss) 1 2000-2001 (31- 03-2000) 22500 1570 (36250) 0 0 2 2001-2002 (31-03-2001) 22500 800 ....
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....s fortune. Accordingly, after primary inquiry found the company was profit making having good future, he negotiated with the original share holder and member of the company M/S M/S Rigmadirappa Investments Pvt Ltd and decided to purchase 10000 shares of M/S Swift IT Infrastructure and Services Limited an unlisted company at Rs.10 per share on the basis of Valuation certificate of Chartered Accountants. In view of this submissions showing facts and figures of his involvement in the market whatever alleged by the ld. AO is without any basis and incorrect as much as whatever mentioned in the table is available on record of the department since the assessee filed his Return of Income regularly since last so many years. The above table clearly shows that the assessee is actively involved in business of share market and more particularly revealed that he has tendency and nature to take risk in the market to turn fortune as it can be seen that he also incurred substantial loss. The ld. AR stated that the assessee acquired shares in June 2012, and he sold such shares after somewhat gap of nearly 2 years so How can it be said to be pre- arranged or pre-determined move because no one can pr....