AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 364
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.... 4. Tirupati Mercantile Ltd. 5. Kadambani Mercantile Ltd. 6. Quick Electronics Ltd. 7. Sandhya Mercantile Ltd. 8. Narain Properties Ltd. 9. Synthetic Marble and Resin Ltd. 10. Vind nyawasani Glassware Ltd. It is appreciated that some of the best brains are behind creation of losses by internal sale and purchase of shares in one case or the other which is beyond reasoning from the view point of commercial expediency. Hon'ble Supreme Court in the landmark decision in the case of Mc. Dowell and Company Ltd. 154 ITR 148 applicable in such cases on colourable devices to defraud revenue. Further it is seen that this is a case of investment company where either gain or loss in sale of shares has to be assessed either as capital gain which is to be computed in view of provision of section 45 to 54 of 1.T. Act or capital loss which is not admissible at all. The assessee has not furnished any material which proves delivery of shares at the time of purchase and sales. Therefore, in absence of am satisfactory reply and adequate details, the losses of shares is considered a speculation loss and is not to be s....
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....2.97 was drawn by the appellant to buy 02 Demand Drafts for total amount of Rs. 11,60,000/-. There is no proof on record that these 02 drafts were indeed drawn in favour of M/s Bubna Stock Broking. The doubt comes to mind since two Demand Drafts have been made on the same date with one cheque. It does not stand to reason as to why two DDs should be made if the payments were going to the same person, i.e. Bubna. The appellant has failed to give a copy of a/c confirmed by M/s Bubna Stock Trading. Be as it may, it further fails me as to how come no payments were made by the appellant to the broker for a period of almost eight nine months of an amount which was in excess of Rs. 21 lakhs. It is common knowledge that brokers demand the payments immediately since they have to make Jonward payments to the persons who had sold the shares through them. In this case, there is payment of only Rs. 11,60,000/- that too in February, 2007 i.e. after a gap of almost 09 months, and further this amount has no correlation whatsoever with the amount due. The next payment of Rs. 5,10,000+ Rs. 4,54,0009 Rs. 9,54,009 has been made to the broker only on 12.03.2007. The entire "purchase" consideration for t....
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....of Income Tax (Appeals)-II, Kanpur 15. Reply Letter dated 24.02.10 filed before Ld. Commissioner of Income Tax (Appeals)-II, Kanpur Paper Index-II 16 Brief Facts of the case 17. Computation of Income for A.Y. 1995-1996 18. Computation of income for A.Y. 1996-1997 19. Comparative chart showing interest income, loss on sale of shares etc 20. Comparative Chart showing addition, returned income etc 21. ITAT Order dated 22.08.2006 in assessee's own case in A.Y. 1995-1996 22. Hon'ble High Court Order dated 30.05.2012 in assessee own case in A.Y. 1996-97 & 1998-99 23. Hon'ble High Court Order dated 27.01.2015 in assessee own case in A.Y. 1995-1996 4.1 Moreover, a brief synopsis was also filed from the assessee's side, the relevant portion of which is reproduced as under: "1. Appellant in the present case is a Public Limited Company by status which has been engaged in carrying business of banking by granting Loans and Advances. Though the main business is of making loans and advances but is has also been engaged in the business of purchases and sales of shares. 2. During the year under consideration, ....
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....96 Metropoli Overseas Ltd. 1466201 to 1511200 45,000 08.48 7,66,350 16.12.1996 Metropoli Overseas Ltd. 1511201 to 1526700 15,500 08.48 2,79,465 16.12.1996 Metropoli Overseas Ltd. 1572701 to 1632500 59,800 08.48 10,78,194 Total 1,20,300 10,20,144 Loss [A-B] 11,03,865 Pl refer page 8 to 14 of Paper Book Ld. CIT(A) did neither doubted the contract note of the Share Broker nor the sale and purchases of shares. (ii) Question of speculative transactions arises in the cases where there is are intra-day transaction and in that case only the differential amount net of sales and purchases is taken into consideration. But in the present case, shares were sold after holding the same for a period of approx. six months. Sale consideration was received in bank account and the purchase amount was paid from the bank account. Pl refer page 18 & 17 of P.B. [ Copy of Buana Account and Bank Account] Ld. CIT(A) did neither doubted the sale proceeds received from the share Broker nor the....
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.... of the Act. In the present case, there is no material to indicate that assessee being a company controlled by business house and that the share transactions have been effected with to manipulate and reduce taxable income. [PI refer Aman Portfolio Pvt. Ltd Vs. DCIT 92 ITD 324-Del] Attached as Annexure-B. In view of the above facts and in light of the findings given by the Hon'ble High Court in assessee own case, loss of Rs. 11,03,865/-is a business loss which deserves to be adjusted against the interest income." 5. At the time of hearing, learned Authorized Representative for the assessee placed reliance on the aforesaid brief synopsis (referred to in foregoing paragraph 4.1 of this order) and on the contents of the aforesaid paper books (referred to in foregoing paragraph 4 of this order). The learned AR for the assessee also placed reliance on order of SMC Bench of Income Tax Appellate Tribunal Delhi in the case of 'Aman Portfolio Pvt. Ltd. Vs. DCIT' in ITA No. 2636/Del/2001 dated 27.09.2004. In particular, he drew our attention to contract notes of the broker M/s Bubna Stock Broking in which distinctive number of shares were mentioned. The learn....