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TMI Blog2015 (6) TMI 796X X X X Extracts X X X X X X X X Extracts X X X X ..... e transferred to assessee’s d-mat account with main broker, cannot be the basis for coming to the conclusion that the actual purchase took place on 26-12-2007 by assessee. In the books of account of sub-broker, the purchase was recorded in assessee’s account on 30-8-2007 and the shares were D-mated in assessee’s account by principal broker on 26-12-2007 from the sub-broker’s account clearly demonstrate that the assessee had purchased shares on 30-8-2007, which were held on assessee’s behalf by M/s TCG Stock Broking Ltd. The sole reason assigned by AO for coming to the conclusion that the shares were held as stock in trade was that the shares were transferred on the same date on which it was purchased. This finding is completely erroneous on the face of it in the back drop of evidence brought on record. We accordingly, confirm the order of CIT(A). - Decided against revenue. - ITA No. 4091/Del/2011 - - - Dated:- 20-2-2015 - Shri S. V. Mehrotra And Shri H. S. Sidhu,JJ. For the Appellant : Shri Vikram Sahay Sr. DR For the Respondent : Shri Sandeep Sapra Adv. ORDER Per S. V. Mehrotra, A.M:- This appeal, preferred by the department, is directed against ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment order. 2.1. The AO, after considering the said reply, sought information U/s 133(6) regarding transfer of shares of M/s Lanco Infratech Ltd. from TCG Stock Broking Ltd. The AO also issued summons u/s 131 to the principal officer of the said company and the reply filed by them has also been reproduced. 2.2. The reply received from TCG Stock Broking Ltd. has been reproduced at pages 6 7 of the assessment order. 2.3. From the aforementioned reply the AO observed that the shares had been bought by TCG Stock Broking Ltd. through the main broker to M/s Crimson Financial Services Ltd. on 30-8-2007. The contract notes had been issued by the broker in the name of TCG Stock Broking Ltd.. These shares were lying in the D-mat account of TCG Stock Broking Ltd. till 26-12-2007, on which date they were transferred to assessee s D-mat account and sold by him on the same day. The AO, therefore, was not convinced with the assessee s submissions that the shares were purchased by him on 30-8-2007. He, therefore, required the Principal Officer of TCG Stock Broking Ltd. to furnish further information, as has been mentioned in para 12 of AO s order. The reply received from TCG Stock B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , she has presumed that they were purchased on the same date and were sold on the same date also. This, thus, became the only basis of her conclusion that the transaction should be treated as a business transaction. 3. Ld. DR relied on the order of AO and submitted that shares were not purchased on 30-8-2007 but on 26-12-2007 and sold on the same date. Therefore, this was definitely an adventure in the nature of trade. He submitted that assessee was in footwear business and out of twenty, nineteen transactions were accepted by AO and only this very transaction of sale of 25000 shares of M/s Lanco Infratech Ltd. was considered as an adventure in the nature of trade. 3.1. Ld. DR referred to page 9 of the assessment order, wherein portions of statement of A.K. Garg, Principal Officer of M/s Lanco Infratech Ltd. is contained and referred to question no. 10 and answer thereon, which is reproduced hereunder: Q. 10. What was the mode of payment received by you? Was any advance or margin money paid to you by Subhash Chand Gupta? Ans. 10. No advance or margin money was received however my company Subhash Chand Gupta both have declaring with Crimsons Financial Services Ltd., w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 37 and 38 of PB wherein statement of account from 1-4-2007 to 31-3-2008 of assessee in the books of M/s TCG Stock Broking Ltd., is contained, to demonstrate that on 30-08-2007 in assessee s account, M/s TCG Stock Broking Ltd., had purchased 25000 shares. Ld. counsel further referred to pages 47 to 71, wherein the assessee s account in the books of M/s Crimson Financial services Ltd. is contained to demonstrate that a sum of ₹ 74,83,706.44 was debited to assessee s account on the basis of Journal entry in the books of M/s TCG Stock Broking Ltd. 4.3. Ld. counsel refeferred to page 56 of department s PB, wherein also the statement of assessee s account in the books of M/s Crimson Financial services Ltd. is contained, which also shows the same entry. He further referred to pages 70 to 76 of the PB to demonstrate that M/s Lanco Infratech Ltd. shares were transferred to assessee s D-mat account on 26-12-2007 from M/s TCG Stock Broking Ltd. He submitted that assessee had running account with M/s Crimson Financial services Ltd. 4.4. Ld. counsel further referred to pages 39 to 44 of assessee s PB to demonstrate that M/s TCG Stock Broking Ltd. had issued purchase bills to assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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