TaxTMI 
TaxTMI 
2026 (8) TMI 370
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....,002/- on rejecting the appellant's claim of Long term capital gain; 3.0 The Ld. CIT-(A), before confirming the addition u/s. 68 of entire sale consideration of STT paid listed shares of M/s Sanasa Tech Fab Ltd (earlier known as M/s Jeevo Motors Finance Co. Ltd) of Rs. 2,50,36,002/-, ought to have considered the understated vital facts, being; a) The correctness of documentary evidence, being Contract-cum-bills, ledger account/confirmation of account, D-mat statements, Global report, bank statements, bhav copy, letter of allotment, etc had not been doubted by the Ld. AO and Ld. CIT(A); b) The period of holding of listed shares in appellant's D-mat account exceeds 16 to 21 months and such shares had been sold on floor of BSE on which STT, Service Tax, etc. had been paid; c) The substantial increase in price of shares listed in BSE cannot be a sole reason to treat the bonafide transaction as non-genuine; d) The SEBI had not framed any allegations and had not passed any contrary order against the appellant and stock broker, e) The appellant is not related to any directors/promoters and exit providers and the AO, inspite of ....
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....t advice, contract notes from Swastika Investments Ltd (Share broker) and bank statement showing payment of consideration and receipt of sales of shares during the year. The assessing officer on the basis of details furnished before him recorded that assessee made application for allotment to 1,00,000/- preferential share of Sanasa Tech Fab Ltd. which were earlier known on Jeevo Motors Finance Company Limited. The shares were allotted on 07.10.2014 at a price of Rs. 10/- per share. The assessee acquired such share off market. The assessee held such share for more than one year and sold between 16.11.2025 to 31.03.2016. The assessing officer examined the financials of such company as recorded on page 2, 3 and 4 of assessment order and recorded that such company was not having tangible asset nor any substantial investment. The shares were artificially rigged from Rs. 10/- to Rs. 284/ -. Such company has not paid any dividend to the shareholders. The assessing officer further recorded that share of this company was traded from Bombay Stock Exchange and limited number of brokerage firms have made trading of its share. The names of various brokers are recorded on page no. 5 to 7 of asse....
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....urther, aggrieved, the assessee has filed present appeal before Tribunal. 6. We have heard the submissions of learned Authorised Representative (ld. AR) of the assessee and the learned Senior Departmental Representative (ld. Sr. DR) for the Revenue. The ld. AR of the assessee submits that assessee purchased the shares of Sanasa Tech Fab Ltd. which were earlier known as Jeevo Motors Finance Company Limited. Such shares were allotted under preferential allotment scheme on 07.03.2014. The assessee purchased / were allotted 1.00 lac shares @ Rs. 10/- per share. The assessee made payment of consideration of Rs. 10 lacs by way of cheque on 20.02.2014 that is at the time of applying for preferential shares. The shares were held in Demat account. The shares were sold through registered broker of Bombay Stock Exchange on 10.11.2015 to 17.03.2016. The assessee received total consideration of Rs. 2.50 crore. The shares were sold at average rate of Rs. 250/- per share. The period of holding was ranging from 17 to 21 months. The assessee before the lower authorities furnished contract note cum sale bills, ledger account of a stock broker, bank statement, Demat statement and rate publication ....
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.... • Nabiul Industrial Metal Pvt. Ltd. vs ITO (NFAC), Delhi ITA No. 1328/Kol/2024 (Kol-ITAT) • Md. Mahimud SK vs ITA ITA No. 2229 & 2230/Kol/2024 (Kol-ITAT) 9. On the other hand, ld. Sr. DR for the Revenue supported the order of lower authorities. The ld. Sr. DR for the Revenue submits that assessing officer has brought sufficient material on record that scrip on the sale of which the assessee has shown long term capital gain were penny scrip. The Investigation Wing carried out full-fledged investigation against such penny scrip company, Sanasa Tech Fab Ltd. is one of the penny scrip companies. Such penny scrip company was not doing actual business except providing accommodation entries. Three were very few brokers who were making transaction of such scrip. The assessee has shown abnormal profit. On the legal issue of assessment order passed by faceless assessment unit, the ld. Sr. DR for the Revenue submits that assessing officer acted in accordance with the faceless scheme framed by CBDT. 10. In short rejoinder submission, the ld. AR of the assessee submits that assessing officer on page 5, 6 & 7 has given the name of certain share broker, wherein the s....
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....firmation of his brokers, Swastika Investmart, bank statement and Demat statement. No comments were made by assessing officer or by ld. CIT(A) nor any adverse material was brought on record. We find that assessee has filed his balance sheet as on 31.03.2015 wherein he has sold investment in various other shares. 13. We find that Hon'ble Gujarat High Court in the case of Himani M. Vakil (2014) 41 taxmann.com 425 (Guj) held that where assessee duly proved genuineness of sale transaction by bringing on record contract notes of sale and purchase, bank statement of broker and demat account showing transfer in and out of shares, assessing officer was not justified in bringing to tax capital gain arising from sale of shares as unexplained cash credit. Further Hon'ble Gujarat High Court in the case of Parasben Kasturchand Kocher (2021) 130 taxmann.com 176 (Guj), also held that when assessee discharged his onus by establishing that transactions were fair and transparent and all relevant details with regard to transfer furnished to Income Tax Authority and the Tribunal have also took the notice of fact that the shares remained in the account of assessee, the assessee also furnishe....