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TMI Blog2014 (8) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... fered by the assessee with regard to sale of shares and re-purchase of shares of company which has been delisted is beyond the comprehension of human probabilities – the order of the CIT(A) is upheld – Decided against Assessee. - I.T.A. No. 4140/Mum/2012 - - - Dated:- 20-8-2014 - Shri D. Manmohan And B. R. Baskaran (AM),JJ. For the Appellant : Shri Kishore K. Poddar For the Respondent : Smt. Parminder Kaur ORDER Per B. R. Baskaran, Accountant Member: The appeal filed by the assessee is directed against the order dated 23.3.2012 passed by Ld CIT(A)-31, Mumbai and it relates to the assessment year 2006-07. The appeal is barred by limitation by 9 days. The assessee has moved a petition requesting the Bench to condone the delay. We heard the parties on this preliminary issue. The Ld D.R, after going through the petition filed by the assessee, did not raise any objection. Hence, we condone the delay and admit the appeal. 2. The assessee is aggrieved by the decision of Ld CIT(A) in confirming the addition of ₹ 28,18,300/- made by the assessing officer u/s 68 of the Act. 3. The facts relating to the issue under consideration are stated in br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 17.03.2011 has submitted in this regard as under: As regards the addition of ₹ 28,18,300/- towards cash deposit u/s.68, the AO has made this addition treating the same being unexplained cash credit. The assessee has submitted that the cash deposits in a bank account cannot be termed as unexplained cash credit. The deposit in the bank account is a debit entry and hence if at all addition is to be made it can only be made u/s.69 of the Act. The details of cash deposit were analyzed. The assessee shown the cash deposits from sale of shares and accordingly he was asked to produce evidence of purchases and holding of shares. The assessee has submitted the letter issued from registrar of Orbit Polyster Ltd filed the letter which states as under: This is to certify that Mr.Vijay Uday Kumar Udani is a registered Share holder as on 31.03.2005 he was holding 2,02,000 share of M/s.Orbit Polyster as on 31.03.2005. This is further to certify that Mr.Vijay Uday Kumar Udani Stood as registered share holder holding 280850 equity shares as on 31st March,2006. Please note that this information is extracted from the register of the share holder for the above period. In supp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant as per the enquiry letters issued by the AO u/s. 133(6) of the Act. All these parties as discussed in the remand report have confirmed their failure to furnish neither the shares nor the copies of transfer forms lodged for the transfer of these shares. Further, it is also quiet strange that the appellant has sold certain equity shares of certain unnamed companies in cash to all these parties and thereafter these parties have again sold the same shares to the appellant at the same rate i.e. at the rate of purchase of the shares after a considerable time. It is also strange that all these transactions of purchase and sales are claimed to have been made in cash. The appellant in process has no documentary evidences in its possession. Neither the details of the company of which these shares pertain, nor the name of the broker through whom the shares are transacted as the AR has contested that he is dealing in these shares as a sub broker. Moreover, no details of purchase bills and sales bill or the details of transfer of share and related evidences are placed on record. Therefore, on account of these facts, I find that the contention of the AR that the cash deposited in the bank a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares has not been proved with the copy of share certificates and Share Transfer form. The Ld D.R further submitted that all the purchasers have given identical reply, which can be noticed from the Remarks column of the table furnished by the AO in the remand report. The Ld D.R submitted that the transaction of sales is not substantiated by any Share broker note also. The Ld D.R further submitted that the some of the persons have sold back the shares to the assessee itself and the reasons given by all of them are that they had to sell the said shares, since it did not have market and further they were in need of funds. The Ld D.R submitted that a prudent person will not buy shares which do not have any market value and the person who got rid of such kind of shares will not buy back the same from those sellers. Accordingly, the Ld D.R submitted that the explanations furnished by the assessee are beyond human probabilities and accordingly contended that the order of Ld CIT(A) should be confirmed. 10. In the rejoinder, the Ld A.R submitted that the share of the above said company was delisted and hence the assessee was constrained to sell the shares in off market. He further su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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