TaxTMI 
TaxTMI 
2026 (9) TMI 853
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....ssment Year 2015-16. 2. Since the facts and issues involved in both the appeals are identical and interconnected, they were heard together and are being disposed of by this consolidated order for the sake of convenience and brevity. ITA No. 4175/Mum/2026 - AY 2014-15 3. In this appeal, the assessee has challenged the addition of Rs. 2,10,14,489/- made under section 68 of the Income-tax Act, 1961 (the "Act"), treating the sale consideration received on transfer of shares as unexplained cash credit, and the consequential addition of Rs. 6,24,446/- made under section 69C of the Act on account of alleged commission paid for obtaining bogus Long Term Capital Gains (LTCG). 4. Briefly stated, the assessee is an individual regularly ass....
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....upported by contemporaneous documentary evidence. 6. In respect of Moryo Industries Limited, it was submitted that the assessee purchased 28,200 physical equity shares on 26.06.2012 for a consideration of Rs. 6,50,900/- from Shri Mohan Jain through account payee cheque No. 454804 drawn on HDFC Bank, Crawford Market Branch, Mumbai. The shares were transferred in the assessee's name on 29.09.2012 by the Registrar and Transfer Agent, M/s Purva Sharegistry India Pvt. Ltd., and were subsequently dematerialised on 10.01.2013. Pursuant to a stock split from face value of Rs. 10/- to Rs. 5/- per share, 56,400 shares were credited to the assessee's demat account on 16.01.2013. During AY 2014-15, the assessee sold 2,600 shares on 17.02.201....
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....Limited, it was submitted that no adverse order or finding of SEBI or any other regulatory authority implicating the assessee had been brought on record. It was further submitted that the additions were made primarily on the basis of generalized investigation material and statements of third parties, without establishing any cash trail between the assessee and the alleged operators or brokers and without affording an opportunity of cross-examination. 9. The learned AR also relied upon the decisions of the coordinate Benches of the Tribunal in the cases of family members and other assessees involving identical scrips, including Sudheer Chirania (ITA No. 5263/Mum/2025), Smt. Anju Chirania (ITA No. 3158/Mum/2024), Smt. Preeti Chirania (ITA ....
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....EBI on 04.12.2014. However, it is an undisputed position that the said interim directions were subsequently revoked by the Whole Time Member of SEBI vide final order dated 21.09.2017. The coordinate Benches of the Tribunal in Smt. Veena Chaturvedi v. DCIT (ITA No. 1702/Mum/2021) and ITO v. Prakashmal Malraj Jain (ITA No. 3271/Mum/2023) have also considered the subsequent developments concerning the said scrip and held that the additions under section 68 could not be sustained merely on the basis of the interim SEBI order which had subsequently been revoked. 14. In respect of Tilak Ventures Limited, the Revenue has not brought on record any adverse finding or order of SEBI or any other regulatory authority implicating the assessee or her ....
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....h payment by the assessee to any alleged entry provider has been brought on record. 17. In view of the foregoing discussion and having regard to the facts and material available on record, we hold that the addition of Rs. 2,10,14,489/- made under section 68 of the Act is not sustainable and is accordingly deleted. 18. Since the addition under section 68, which constitutes the basis for the alleged commission expenditure, has been deleted, the consequential addition of Rs. 6,24,446/- made under section 69C of the Act towards alleged commission is also deleted. 19. Accordingly, the appeal of the assessee for AY 2014-15 is allowed. ITA No. 4176/Mum/2026 - AY 2015-16 20. In this appeal, the assessee has challenged the validity of....
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....r, the reasons recorded were not furnished to the assessee before the assessment proceedings were proceeded with. The AO, instead, issued notice under section 143(2) on 20.11.2018 and completed the reassessment. 24. The Hon'ble Supreme Court in GKN Driveshafts (India) Ltd. (supra) has laid down the procedure to be followed where an assessment is reopened under section 147 of the Act. The assessee is entitled to receive the reasons recorded by the AO on request, and objections, if any, are required to be disposed of by the AO before proceeding further in the matter. 25. In the facts of the present case, the AO proceeded with the reassessment without furnishing the recorded reasons despite the specific request made by the assessee. ....