TaxTMI 
TaxTMI 
2026 (6) TMI 1394
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....on account of sales proceeds of shares treated as bogus and assessed the income from unexplained sources amounting to Rs. 1 crore. 2. The brief facts are that the assessee sold equity shares 3,26 of M/s Osyers Communication Pvt. Ltd. for a total consideration of Rs. 1 crore and computed capital gain as under:- Sale Consideration (a) 161312 Equity Shares of Icreon Communications Pvt. Ltd. sold at the rate of Rs. 31 to Mr. Himanshu Sareen (Spouses) 50,00,000 (b) 161312 Equity Shares of Icreon Communications Pvt. Ltd. sold at the rate of Rs. 31 to Mr. Sandeep Sawhney 50,00,000 (c) Total sales consideration (a+b) 1,00,00,000 2.1 The AO required the assessee to file documentary evidences in regard to sale transaction of equity shares of M/s Icereon Communications Pvt. Ltd to prove the genuineness of the transaction. The assessee company filed the photocopy of the MOU executed amongst three persons namely assessee herself, Himanshu Sareen and Sandeep Sawhney for the sale consideration of these shares. The AO also required the assessee to file the copies of shares certificates and as to how the transaction was routed viz. t....
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....the year under consideration an amount of Rs. 1,00,00,000/- has been found credited in the bank account of the assessee and in view of the facts mentioned above, the same is treated to be unexplained under the provisions of Section 68 of the Act and added to the total income. This amount of Rs. 1,00,00,000/- is also required to be added in the hands of the assessee under the provisions of section 56(2)(vii) of the Act. This gives an addition of Rs. 1,00,00,000/-. I am satisfied that the assessee has furnished inaccurate particulars of income and therefore, penalty proceedings u/s. 271(1)(c) of the Act are initiated separately. 2.2 From the above, it is clear that AO also made addition u/s. 56(2)(vii), but there is no finding at all on this aspect, how the provisions of section 56(2)(vii) applies in the present case. In terms of above, the AO added the sum of Rs. 1 crore u/s. 68 of the Act as well as u/s. 56(2)(vii) of the Act. 3. Aggrieved, assessee preferred appeal before the Ld. CIT(A). Ld. CIT(A) observed that the assessee filed only a photocopy of MOU prepared amongst three persons, but it was evident from the stamp papers of MOU at page no. 1-A that the stamp no. 2113 wa....
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....hich was offered as LTCG as cost of these bonus shares were NIL. The evidences would show that assessee was having the shares which she sold. Ld. AR drew our attention towards paper book page nos. 13 to 16 which is the copy of the assessee's reply dated 13.10.2015 filed before the AO submitting that she sold 3,22,624 shares of M/s Icreon Communication Pvt. Ltd. and total bonus shares held by her as on 31.03.2012 were to the tune of 18,48,940 and submitting bank statement in which sale proceeds of the shares stood deposited. He further drew our attention towards Page no. 17 of the paper book which is the detail of capital gain filed to AO showing FMV of shares at the rate of Rs. 31/- per shares. The Page No. 2, 5 of the Paper book are the computation of income showing capital gain on sale of these shares; paper book page no. 18-19 is the copy of the assessee's reply dated 07.12.2015 filed before the AO submitting that the assessee sold these 3,22,624 shares of M/s Icreon Communication Pvt. Ltd.; Page no. 20 of the paper book is the FMV working of these shares as on 31.03.2012. Page No. PB 21-22 is the copy of the assessee's reply dated 24.02.2016 filed before the AO about sale of th....
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.... with the Registrar of Companies, evidencing allotment of 15,50,919 bonus shares by the company, out of which 7,10,640 shares were allotted to the appellant on 29.10.2010. Additional evidences page nos. 22-115 are the copies of Form 20 (Annual Returns) for the years ending 31.03.2006 to 31.03.2013, evidencing that the assessee held shares in the company in the earlier years, thereby conclusively establishing continuity of shareholding. 8. It was the further contention that when the relation of assessee and her husband Sh. Himanshu Sareen started to be sour note, the shareholding of the assessee was sought to be acquired slowly and gradually by her husband and this oral understanding was entered on 15.04.2012 which was reduced in writing on stamp paper bought on 01.03.2013. It is noted that AO at page no. 4 of the assessment order mentioned that though these shares were sold @ 31/- per shares and thus the total sale consideration as per should be Rs. 1,00,01,344/- but assessee has sold these shares for Rs. 1,00,00,000/-. In reply, the deal relating to the sale of shares was done for Rs. 1,00,00,000/- and not of Rs. 1,00,01,344/- and excess Rs. 1344/- was ignored. It is observed t....