TaxTMI 
TaxTMI 
2023 (7) TMI 1663
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....n 147 of the Act on the basis of information received from the investigation wing that a person named Vipul Vidur Bhatt and his group of companies are engaged in the business of providing accommodation entries, inter alia, in the form of long term capital gains. It was noticed that the assessee has earned long term capital gains on sale of shares of M/s. Sampada Chemicals Limited. Since the above said company belonged to Mr. Vipul Vidur Bhatt, the Assessing Officer took the view that the capital gain declared by the assessee is bogus in nature and accordingly reopened the assessment. 3. Before the Assessing Officer the assessee furnished details of purchase and sale of shares of M/s. Sampada Chemicals Ltd., viz., bank statement, DP statement, broker note etc. Accordingly the assessee contended that the capital gains declared by her should not be treated as unexplained cash credit. The Assessing Officer, however, did not accept the explanation given by the assessee. He expressed the view the rise in share price of M/s. Sampada Chemicals Ltd. is not commensurate with its fundamentals. Accordingly, the Assessing Officer assessed the long term capital gains declared by the assessee ....
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....t have any impact upon the assessee. He submitted that the assessee has invested in many shares apart from the shares of M/s Sampada Chemicals Ltd. Accordingly, he submitted that there is no connection of the assessee with Vipul Vidur Bhatt. He submitted that the Assessing Officer has simply placed reliance on the report given by the investigation wing. He submitted that the Assessing Officer did not conduct any independent inquiry on the transactions entered by the assessee nor did he find any fault with the documents filed by the assessee. He also submitted that the broker M/s Sharekhan Ltd is not identified as a tainted broker and the SEBI also has not taken any action against the broker Sharekhan Limited or the assessee. Accordingly he submitted that there is no reason to disbelieve the capital gains declared by the assessee. In support of his submission learned AR placed reliance on the decision rendered by Hon'ble Bombay High Court in the case of PCIT Vs. Indravadan Jain HUF (ITA No. 454 of 2018 dated 12.7.2023). 6. Learned DR submitted that the company M/s. Sampada Chemicals Ltd. has been identified as one of the penny stocks, whose share price has been rigged by the ....
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....y the Department. Once the onus on the Department was discharged, according to Mr.Sureshkumr, by the Revenue-Department, then, such a finding by the Tribunal raises a substantial question of law. The Appeal, therefore, be admitted. 4. Mr. Gopal, learned Counsel appearing on behalf of the Assessee in each of these Appeals, invites our attention to the finding of the Tribunal. He submits that if this was nothing but an accommodation of cash or conversion of unaccounted money into accounted one, then, the evidence should have been complete. Change of circumstances ought to have, after the result of the investigation, connected the Assessee in some way or either with these brokers and the persons floating the two companies. It is only, after the Assessee who is supposed to dealing in shares and producing all the details including the DMAT account, the Exchange at Calcutta confirming the transaction, that the Appeal of the Assessee has been rightly allowed. The Tribunal has not merely interfered with the concurrent orders because another view was possible. It interfered because it was required to interfere with them as the Commissioner and the Assessing Officer failed to note s....
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.... shares of Bolton Properties Ltd. purchased by the Assessee during the month of January 2003 and he continued to hold them till 31 March 2003. The present case related to 20,000 shares of Mantra Online Ltd for the total consideration of Rs.25,93,150/-. These shares were sold and how they were sold, on what dates and for what consideration and the sums received by cheques have been referred extensively by the Tribunal in para 10. A copy of the DMAT account, placed at pages 36 & 37 of the Appeal Paper Book before the Tribunal showed the credit of share transaction. The contract notes in Form-A with two brokers were available and which gave details of the transactions. The contract note is a system generated and prescribed by the Stock Exchange. From this material, in para 11 the Tribunal concluded that this was not mere accommodation of cash and enabling it to be converted into accounted or regular payment. The discrepancy pointed out by the Calcutta Stock Exchange regarding client Code has been referred to. But the Tribunal concluded that itself, is not enough to prove that the transactions in the impugned shares were bogus/sham. The details received from Stock Exchange have been re....
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....gation against the assessee that it has participated in any price rigging in the market on the shares of RFL. 3. Therefore we find nothing perverse in the order of the Tribunal. 4. Mr. Walve placed reliance on a judgement of the Apex Court in Principal Commissioner of Income tax (Central)-1 vs. NRA Iron & Steel (P) Ltd (2019)(103 taxmann.com 48)(SC) 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. 9. In the case of PCIT vs. Indravadan Jain HUF (Income tax Appeal No.454 of 2018 dated 12th July, 2013), the Hon'ble Bombay High Court held as under:- "4. .....The CIT(A) came to the conclusion that respondent brought 3000 shares of RFL, on the floor of Kolkatta Stock Exchange through registered share broker. In pursuance of purchase of shares the said broker had raised invoice and purchase pr....