TaxTMI 
TaxTMI 
2026 (7) TMI 1584
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....under Section 10(38) of the Income-tax Act on account of long-term capital gain earned as a result of trading in the shares of a company named Shree Shaleen Textile Limited. However, the said exemption was denied on the ground that the said company, Shree Shaleen Textile Limited, in whose shares the long-term capital gain was earned by the assessee, did not have strong financials, was not engaged in any genuine activities, and was designed to provide accommodation entries. 4. It was also submitted that the evidence collected by the AO suggested that Shree Shaleen Textile Limited was a shell company facilitating accommodation entries and that the allegations against the assessee were supported by the statements recorded under oath of the alleged entry providers, Akash Agarwal and Sawan Jajoo. It was also submitted that action had been initiated against the said company by the BSE and SEBI. 5. Whereas, on the contrary, the learned AR reiterated the same arguments as were raised before the Revenue Authorities and submitted that the assessee had entered into genuine transactions, had purchased shares of Shree Shaleen Textile Limited through account payee cheques, and, after holdi....
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....- ITA No. 695/MUM/2018; 2. Pawankumar Bachrajchandan - ITA No. 2592/MUM/2023; 3. Rashmiben P. Kanungo - ITA No. 2131/Ahd/2018; 4. Smt. Veena Chaturvedi v. DCIT (CC)-2(3), ITAT "F" Bench, Mumbai, ITA No. 1702/Mum/2021; 5. Combined Appellate Order dated 21.09.2022 passed by the Hon'ble ITAT, "SMC" Bench, Mumbai, in the cases of Suresh M. Jain HUF (ITA No. 6614/Mum/2019), Heena Suresh Jain (ITA No. 6617/Mum/2019), and Rameshkumar Mohanlal Jain (ITA No. 315/Mum/2020), all relating to A.Y. 2014-15; and 6. Appellate Order dated 10.01.2023 passed by the Hon'ble ITAT, "SMC" Bench, Mumbai, in the case of Kiran Bhanwarlal Jogani in ITA No. 2441/Mum/2022 for A.Y. 2014-15. Wherein, it was submitted that all the above cases involved transactions in the same scrip of Shree Shaleen Textile Limited. In all these cases, the additions made by the Assessing Officer were deleted by the respective Co-ordinate Benches of the ITAT. 8.1. The operative portion of the one of the decision of Coordinate Bench of ITAT in the case of, Smt. Veena Chaturvedi v. DCIT (CC)-2(3), is reproduced herein below: 18. We have heard the rival submissions an....
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....mpany or any kind of alleged exit providers. Now in the case of her husband, Shri Rajendra Chaturvedi, the coordinate bench on exactly similar facts and reasoning of the AO and CIT (A) has deleted the said addition. 20. The AO has observed that the prices of the shares had reached upto 500/- per share to show assessee has gained multifold, however, assessee had sold the price changing price between Rs. 79 to Rs. 86/- per share which was quoted price in the Bombay Stock Exchange on which rate such shares were traded and had bought the shares at average price of Rs. 20/- per share. However, the main point which has been discussed at length by the ld. AO in his order that in the case of exit providers, there is the order of the SEBI dated 04/12/2014 in the case of Moryo Industries Ltd., who was one of the six exit providers of the impugned shares of Chaturvedi family. On this ground, the ld. AO has endeavored to depict nexus between the exit providers and Shreenath Commercial & Finance Ltd., and all the concerns have common promoter Shri Giriraj Kishore Agarwal. Therefore there was whole nexus which was found by the SEBI and these exit providers were banned by the order of th....
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....ernment agencies has been done in the case of M/s. Shreenath Commercial & Finance Ltd. or the broker from whom assessee has purchased online or the assessee or the family member. In so far as one of his observations that one Shri. Giriraj Kishore Agarwal was the promoter, Director of various entities including M/s. Shreenath Commercial & Finance Ltd., he became the Director of this company on 10/11/2016. i.e., after more than 3 ½ years, when the assessee had sold shares through Bombay Stock Exchange. In any case, the adverse inference of common link of Shri Giriraj Kishore Agarwal was discharged by the final SEBI order dated 29/11/2017. Therefore, tenuous connection made by the ld. AO to link M/s. Shreenath Commercial & Finance Ltd. with Moryo Industries Limited and other alleged exit providers through Shri Giriraj Kishore Agarwal does not hold any ground. 22. In so far as general observation in respect of share brokers on whom survey action was conducted by Directorate of Investigation Wing of Kolkata who had allegedly accepted the role in providing accommodation entry of bogus/ long term capital gain first of all such a reference is wholly out of context because a....
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....so assessee had cited various decisions of the Hon'ble Bombay High Court as mentioned above wherein the Hon'ble Bombay High Court had held that where the transactions have been made both purchase and sales through online and there is no adverse material or information except with some brokers have stated in their statement that they have provided accommodation entry in various scrips in one such scrip involved, that does not lead to drawing any adverse inference to treat the share transactions as bogus done through stock exchange. 24. Be that as may be, we find that on exactly similar set of facts and identical finding, this Tribunal in the case of the assessee's husband Shri Rajendra Chaturvedi and Mrs. Pallavi Pandey supra, the Co-ordinate Bench has deleted the said addition after observing as under:- "We have heard the rival submissions of both the parties and perused the material on record including the various case laws referred by the rival parties during the course of hearing. The undisputed facts are that the assessee has purchased 28 lakhs of shares of M/s. Shrinath Commercial and Finance Ltd. between 04.03.2011 to 15.03.2011 M/s. Shrinath Commercial and ....