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TMI Blog2016 (4) TMI 1182X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Appeals). The Tribunal after examining the matter recorded that once the shares had been shown in stock in trade by the assessee itself, it could not be said that the assessee had made investment in such shares and thus these transactions were held to be in the nature of trading transactions. the assessee-appellant was not successful in demonstrating that the findings recorded by the Tribunal were based on either misreading or misappreciation of material on record. X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant replied that the same were receipts from his customers for whom he was doing trading of commodities as per past and future practice. The Assessing Officer deputed his Inspector to verify the claim from only four persons as a test check. After examining the matter, the Assessing Officer treated the entire set of receipts from all the 27 persons claimed as unexplained cash credits/unexplained investments under sections 68/69 of the Act and made addition of ₹ 30,40,620 vide order dated December 31, 2010, annexure A1. Further, the Assessing Officer treated short-term capital gains of ₹ 6,93,533 and long-term capital gains of ₹ 34,263 as business income. It was also stated that the assessee was earning his income from trading in equities in his personal capacity as well as trading in commodities on behalf of clients from M/s. Neel Kanth Commodities Services. Aggrieved by the order, the assessee filed appeal before the Commissioner of Income-tax (Appeals) (CIT(A)). Due to non appearance before the Commissioner of Income-tax (Appeals), the addition was sustained by the Commissioner of Income-tax (Appeals) vide order dated January 5, 2012, annexure A2. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 2, 2011, December 12, 2011, this means that the learned Commissioner of Income-tax (Appeals) gave more than half a dozen opportunities to the assessee but the assessee did not take any precaution to file these evidences. We further find that during the assessment proceedings the assessee has filed a list of 27 persons from whom the cash is supposed to have been received out of which the permanent account number etc. was given for ten persons. The Assessing Officer issued summons to two persons which were returned because addresses were not correct and when this was confronted to the assessee it was simply stated that may be these persons have shifted but no plausible explanation was given. The other two persons, i.e., Shri Chaman Lal and Shri Manoj Kumar straightaway refused that they have undertaken any transaction with the assessee and even during the cross examination the assessee's counsel could not explain the statement or filed any evidence to show that they have undertaken any transaction with the assessee. This fact clearly shows that the assessee is trying to build a story as an afterthought. We further find that the evidence which is sought to be filed now as additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thus these transactions were held to be in the nature of trading transactions. Upholding the findings recorded by the Assessing Officer and the Commissioner of Income-tax (Appeals) on this issue, it was recorded by the Tribunal as under : "Before us a chart showing transactions was also filed and perusal of the same clearly shows that the assessee has dealt in various share transactions and they are in the nature of trading transactions, in large number of transactions the assessee held shares for less than seven days, in some cases the transactions are of repeated nature for example in case of GMR INFRA 500 shares were purchased on November 20, 2007 and sold on November 21, 2007, again 2000 shares were purchased on November 21, 2007 and sold on November 28, 2007, on March 12, 2008, further 200 shares were purchased and sold on March 13, 2008. Again in case of HFCL 100 shares were purchased on June 6, 2007 and sold on July 2, 2007, again 1000 shares were purchased on October 25, 2007 and sold on October 30, 2007, again 7500 shares were purchased on February 26, 2008 and sold on February 27, 2008, on February 29, 2008 further 2500 shares were purchased and sold on March 31, 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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