TaxTMI 
TaxTMI 
2025 (4) TMI 407
X X X X Extracts X X X X
X X X X Extracts X X X X
....nderstanding the facts and circumstances of the case. 2. The learned CIT (A) and the Assessing officer made additions without providing a cross-examination of the witness and not following the principles of natural justice. 3. The authority to assess the cases where search is initiated under section 132 is provided under section 153A or 153C and not under section 148 of the income tax act. The re-opening under section 148 was made without jurisdiction 4. The learned CIT (A) has passed the assessment order without any direct evidence against appellant and merely on report of investigation wing. The entire addition has been made purely on suspicion without any direct evidence against the Appellant, merely on the basis of untested and uncorroborated report of Investigation Wing and on borrowed satisfaction of the investigation authorities. 2.1. Assessee has also raised additional grounds, as ground no.5 and 6 vide application dated 08.10.2024 which are reproduced as under. For the purpose of admission of these additional grounds, it is submitted that assessee inadvertently omitted to include them in the original appeal memo in Form No.36. According to the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....me: Arena Infotech Limited e. Documents in support: Ledger account of AlL, bank statement, contract notes. Refer PB pg nos. 71,110, 111, 112, 226 Details of shares sold in A.Y. 2016-17: a. Date of sale: 01.10.2015 b. No. of shares sold: 11,470 (balance still held) c. Mode of sale: RTGS and Cheque d. Broker: Joindre Capital Services Limited (JCSL) e. Documents in support: Contract Notes, Ledger Account of JCSL, bank statement, contract notes. Refer in PB pg nos. 71, 121, 122, 142, 156, 157, 226 3.2. In the course of assessment, Ld. Assessing Officer called for details and explanations in respect of the transaction of sale of shares on which exemption has been claimed under section 10(38) on account of long-term capital gain earned by the assessee. To corroborate the facts, assessee furnished relevant documentary evidences which are placed on record in the paper book before us, containing 244 pages, which includes: i. Photocopy of contract Notes issued by JCSL. ii. Photocopy of Ledger account in the name of ass issued by JCSL. iii. Photocopy of Bank Statements showing amount paid and received....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aised against reasons for reopening, dated 06.02.2022 in para-9 that "The information made available to the Assessing Officer could not have been shared by him as it contained information related to various assessee, and sharing the same would have revealed information of those assesses. Though certain parts (relevant for reopening and objections raised by the assessee) have been discussed herein." 3.7. Further, it was pointed out by the assessee that apprehension and doubt raised by the ld. Assessing Officer about order passed by Securities Exchange Board of India (SEBI) on suspending trading in the scrip of Goenka Business and Finance Ltd. turned out to be otherwise, since the trading was resumed in 2016. Fact relating to this aspect is that Bombay Stock Exchange (BSE), after passing an interim order for suspension in trading of scrip of Goenka Business and Finance Ltd. conducted comprehensive and thorough investigation and finally passed an order resuming the trading, later in 2016. This fact is accepted by ld. Assessing Officer in the impugned assessment order, in para 5.6(1), which is reproduced as under: "On 21st December 2015, BSE suspended trading in 35 listed c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssing Officer, thus completed the assessment by making an addition u/s 68 of the Act towards entire sale consideration of Rs. 50,91,646/- received by the assessee on the transaction of sale of shares in the aforesaid scrip. 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 his rebuttal and clarifications on the orders of SEBI referred by ld. Assessing Officer. According to the ld. Counsel, SEBI resumed the trading in the scrip of the company in 2016 itself. 5.1 In the course of hearing, ld. Sr.DR had placed reliance on the order of ld. Assessing Officer and referred to adjudication orders passed by SEBI and asserted that the share transactions undertaken by the assessee are of tainted scrip which were investigate....
X X X X Extracts X X X X
X X X X Extracts X X X X
....of the case, it is not in controversy that assessee has discharged his burden by submitting the relevant documents, details of which are already noted above, forming part of the paper book. 7. 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. astronomical increase in the price of shares, weak fundamentals of the relevant companies are based on mere conjectures. 8. Reliance placed by the ld. Assessing Officer on the report of investigation wing without further corroboration based on cogent material does not justify the conclusion that the impugned transaction is bogus, sham and part of racket of accommodation ent....
X X X X Extracts X X X X
X X X X Extracts X X X X
....entral)-1 v. NRA Iron & Steel (P.) Ltd. but that does not help the revenue in as much as the facts in that case were entirely different. 5. In our view, the Tribunal has not committed any perversity or applied incorrect principles to the given facts and when the facts and circumstances are properly analysed and correct test is applied to decide the issue at hand, then, we do not think that question as pressed raises any substantial question of law. 6. The appeal is devoid of merits and it is dismissed with no order as to costs." ii) PCIT vs. Indravadan Jain HUF [2023] 156 taxmann.com 605 (Bom) wherein it was held: "Where shares were purchased by assessee on floor of stock exchange and not from broker, payment was made through banking channel, deliveries were taken in DMAT account where shares remained for more than one year, contract notes were issued and shares were also sold on stock exchange, there was no reason to add capital gains as unexplained cash credit under section 68" iii) CIT vs. Shyam R. Pawar [2015] 54 taxmann.com 108 (Bom) wherein it was held: "Where DMAT account and contract note showed details of share transact....
X X X X Extracts X X X X
X X X X Extracts X X X X
....8 14.83.593.34 35,51.137.08 Dr 95.700.74 Dr 2.60,116.39 Dr 26.493.80 Dr 2.27.885.16 Dr 46.870.00 Dr 2.19.560.18 Dr 2.10.000.00 Dr 37.720.39 Dr 32.140.36 Dr 19.236.14 Dr 1.71.886.93 Dr 11.84,705.87 Dr 57.319.04 Dr 2.64,151.30 Dr 1.88.484.71 Dr 38.60 Dr 2,00,000.00 Dr 54,227.62 Dr 168.50 Dr 25,530.66 Dr 35,62,390.54 Dr Document 2 Name Purchase Sale date qty rate cost date qty rate cost short term long term Biocon 100 265 26,494 15.7.15 100 489 48,807 22. 313 Blue Star 9.12.14 24 202 4,857 22.9.15 24 275 6,610 1.753 Blue Star 9.12.14 2 202 405 19.8.15 2 304 608 203 Blue Star 22.1.15 800 223 178,096 22.7.15 800 268 214,712 36,616 Blue Star 22.1.15 200 223 44,524 22.9.15 200 289 57,801 12,335 Blue Star 21.7.15 300 245 73,485 22.7.15 300 249 74,604 1,119 Blue Star 22.7.15 150 261 39,216 30.7.15 150 286 42,947 3,782 Blue Star 22.7.15 350 261 91,504 19.8.15 350 304 106,325 15,391 Blue Star 22.9.15 24 289 6,936 19.8.15 24 304 7,291 355 Blue Star 22.9.15 24 289 6,942 24 304 7,291 349 Chem Alkalies 500 94 46,870 28.7.15 500 95 47,760 890 Goenka 21.6.14 3,000 10 30,000 1....