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TMI Blog2013 (10) TMI 552X X X X Extracts X X X X X X X X Extracts X X X X ..... ai Versus Claridges Investments & Finances (P.) Ltd. [2007 (8) TMI 481 - ITAT MUMBAI] - Decided against Revenue. - ITA No. 5154/Mum/2011 - - - Dated:- 12-6-2013 - Shri P. M. Jagtap And Shri Vivek Varma,JJ. For the Appellant : Shri Manoj Kumar For the Respondent : Shri Subodh L. Ratnaparkhi ORDER Per Vivek Varma, JM:- The appeal arises from the order of CIT(A) I, Mumbai, dated 31.03.2011, wherein, the department has raised the following grounds: 1. On the facts and in the circumstances of the case, the CIT(A)-I, Thane erred in deleting the addition of Rs. 18,65,220/- made u/s. 68 of the I.T. Act by holding that there was no sufficient evidence to disprove the claim for purchase and sale of equity shares made by the assessee, overlooking the fact that the transaction was denied by DPS Securities Pvt. Ltd. and corroborated by evidence from Bombay Stock Exchange. 2. On the facts and in the circumstances of the case, the CIT(A)-I, Thane erred in overlooking the fact that Bombay Stock Exchange has confirmed the trade executed by DPS Shares Securities Ltd. was during the period 15.06.2004 to 21.06.2004 in the scrip Robinson Worldwide Ltd. for its client code A05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and submitted the following documents in support of his claim 1. Copy of the ledger account of the assessee in the books of M/s. DPS Shares Securities Pvt. Ltd., Mumbai reflecting payment received by the said company. 2. Copy of shares certificate issued in physical form by Robinson Implex (I) Ltd. dated 30.04.2003 bearing certificate No. 75061 DIST No. 1830701 to 1850700 register folio No. T59. 3. Confirmation dated 18.10.2007 obtained from Robinson World Wide Trade Limited (Formerly known as Robinson Impex (I) Ltd. confirming that the assessee held 20,000 shares of the company on 30.04.2003. 4. A copy of original certificate of the company issued in physical form duly defaced with stamp "surrendered for dematerialization" with details of DP M/s. Sodhani Securities Limited noted thereon. Assessee sold 20,000 shares of M/s. Robinson Impex (I) Ltd on various dates in support of the same assessee has submitted the following documents 1. Copies of contract notes and bills issued by M/s. DPS Shares Securities Pvt Ltd., Mumbai 2. Receipt of sale consideration by account payee cheque from M/s. DPS Securities Pvt Ltd, Mumbai and its credit to the assessee's bank accounts. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e CIT(A), before whom complete details were placed, who after considering the complete information available, held, "I have considered the findings of the A.O. as contained in the asst. order as well as the written submissions of the appellant and evidences produced before me. The concerned documents evidencing the purchase and sale of shares by the appellant, the confirmation dt. 18.10.2007 from M/s. Robinson Worldwide Trade Ltd. (formerly known as M/s. Robinson Impex (I) Ltd.) and the statement of d'mat holding of shares by the appellant with DP : M/s. Sodhani Securities Ltd. have been examined. I have also gone through the decisions relied upon by the appellant. 5.1 The appellant has claimed to have purchased 20,000 equity shares of M/s. Robinson Impex (I) Ltd. on 04.04.03 through the broker M/s. D.P.S. Shares and Securities Pvt. Ltd. The said shares have been sent for dematerialization and dematerialized shares have been credited to the appellant's d'mat account with DP : M/s. Sodhani Securities Ltd. (under NSDL). The concerned shares have been sold through the same broker M/s. D.P.S. Shares and Securities Pvt. Ltd. on 3 different dates, all in June 2004. On sale of shares, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock exchange has confirmed that sales were executed by the broker M/s. D.P.S. Shares and Securities Pvt. Ltd. as claimed except for the anomaly that the code of the client executing the trade was that of one Shri. Ashok Ambani and not the appellant. Errors in submission of client code by the brokers during execution of trades are common and a regular feature. The ld A.O. has not carried out any further enquiries but has relied upon this information to take and adverse view. The appellant during asst. proceedings had requested the A.O. to have this anomaly sorted out by examining the broker. However, this was not done by the A.O. In absence of any further confirmation, I do not feel that the same is sufficient evidence of any wrong doing on the part of the appellant. 5.4 The appellant in the course of asst. proceedings has filed a confirmation letter dt.18.10.2007 from the company M/s. Robinson Worldwide Trade Ltd. (Formerly known as M/s. Robinson Impex (India) Ltd.) that the appellant held 20,000 equity shares of the company on 30.04.2003 under folio no's. T-59, Dist. No's. 1830701 to 1850700 issued under certificate no. 75061. The said certificate by the concerned company tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of ITO Ward 2(3) Thane -- Vs - Shri Paresh R. Gala, ITA No. 3634/M/07 dt. 11.06.2009 while upholding the claim of the appellant has held that where shares were sold through d'mat account the same could not be disputed." and deleted the addition. 10. Aggrieved, the department is in appeal before the ITAT. 11. Before us, the DR heavily placed reliance on the order of the AO and submitted that though the sale of shares have been confirmed as genuine, but since the purchase of the same has not been evidenced and proved, in such a circumstance positive inference could be drawn that, the sale too could be not genuine. He also accepted that since there is no broker confirmation with regard to purchases and also no BSE details available, the purchase could be off market. 12. Since, the main argument rested on unconfirmed purchase of 20,000 shares, according to the DR, the entire transaction could not be held to be genuine. He also pointed out that even the name of the assessee does not tally, because some places it is K Naresh Chandra (HUF) and some placed it is K Nareshchandra. The DR, placed reliance on the decision Arvind M Kariya, ITA no. 7024/Mum/2010 (Mumbai ITAT). 13. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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