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TMI Blog2016 (11) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment order dated 19th October, 2011 passed by the learned Assessing Officer (hereinafter called "the AO") u/s 143(3) r.w.s. 147 of the Income Tax Act,1961 (Hereinafter called "the Act"). 2. The grounds of appeal raised by the assessee in the memo of appeal filed with the Income Tax Appellate Tribunal, Mumbai (hereinafter called "the Tribunal") read as under:- "On the facts and in circumstances of the case, the Commissioner of Income Tax (Appeals) - 23 has 1. Erred in confirming addition of Rs. 1,00,518/- u/s 68 of Income Tax Act, 1961. 2. Erred in not considering the facts that the shares were purchased out of the gain received and shares were held in Demat account as Investment." 3. The brief facts of the case are that the ret ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dering only credit side of the bills. It was submitted that during the relevant period shares of Mastek Ltd. and Wipro Ltd. were purchased and sold and its gain is shown as speculative profit of Rs. 1,00,044/- and tax thereon was paid by the assessee on the said speculation gains. The assessee has shown shares of Buniyad Chemicals and Talent Infoway Ltd. as an investment in the Balance Sheet and hence there was no escapement of income. The A.O. rejected the contention of the assessee and held that the case was reopened based upon the information received after a search operation u/s.132 of the Act was conducted upon the M/s Mahasagar Securities P. Ltd and it was observed that group concerns of Mahasagar Securities Private Limited through t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ledger accounts of the various clients showing details of purchase and sale of shares. A similar copy of ledger account , given by the investigation wing is also on the records. The copy of the ledger accounts extract in the name of assessee was reconciled with the bills of the sale and purchase of shares through M/s Mahasagar Securities P. Ltd. and all the entries were matched. It was the contention of the assessee that only credit side of the bills are added while the AO observed that the searches were conducted u/s 132 of the Act on Mahasagar Securities Private Limited whereby it was found that the said concern is engaged in providing bogus bills and accommodation entries and hence proof of sale and purchase of bills of Wipro Limited an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the AO vide assessment order dated 19-10-2011 passed u/s 143(3) read with Section 147 of the Act. 4. Aggrieved by the assessment order dated 19-10-2011 passed by the A.O. u/s. 143(3) read with Section 147 of the Act, the assessee carried the matter in appeal before the ld. CIT(A). 5. The ld. CIT (A) after considering the submissions of the assessee held that on perusal of bills issued by Mahasagar Securities Private Ltd. reveals that the alleged transaction for purchase and sale of shares of Mastek Limited and Wipro Limited were not carried on through the stock exchange nor does it carry the details of the settlement period. The investigation by the Investigation wing of the Revenue had revealed that the said concern M/s Mahasagar Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1,00,518/- does not stood explained and the addition was upheld by learned CIT(A) vide appellate orders dated 08-10-2013. 6. Aggrieved by the appellate orders dated 08-10-2013 passed by the ld. CIT(A), the assessee is in further appeal before the Tribunal. 7. The ld. Counsel for the assessee submitted that the assessee has undertaken purchase and sale of shares of Mastek Ltd. and Wipro Ltd. on 10- 4-2003 which resulted in speculation profit of Rs. 1,00,044/- which was offered for taxation and the same was invested in purchase of shares of Buniyad Chemicals Ltd. and Talent Infoways Ltd. to the tune of Rs. 1,00,518/- and the A.O. has erred in making addition as the source of investment stood explained. It was submitted that the learned CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd purchase of shares of Mastek Limited and Wipro Limited was invested in making investment in shares of Buniyad Chemicals Limited and Talent Infoways Limited. It is further the contention of the assessee that said speculation gain of Rs. 1,00,044/- on purchase and sale of shares of Mastek Limited and Wipro Limited had already suffered taxation as the assessee offered the same for taxation in the return of income filed with the Revenue. No evidence to support these contention to demolish the findings and conclusions of learned CIT(A) has been filed before us . Thus, in present scenario based on factual matrix of the case as culled out from the records, the matter need to be set aside and restored to the file of the AO for the purposes of ve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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