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TMI Blog2016 (9) TMI 1319X X X X Extracts X X X X X X X X Extracts X X X X ..... justification for making any addition under Section 69C by presuming that assessee has made payment for the purchases without disclosing its source. As per the remand report, all these transactions of purchases were speculative in nature and on the very same date sales have been effected in respect of purchases so made. Nothing was brought on record by learned AO or CIT(A) to say that assessee has made any actual payment on account of purchase of shares or received any cheque against the sales of shares made by it. The assessee has already disclosed profit/loss on these speculative transactions. Accordingly, there is no justification for the additions so made by the AO on account of purchase amount of shares u/s.69C. - Decided in favour of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Level India Ltd., Ashok Layland Ltd., Prraneta Ind., Bharat Forge Go. Ltd., Bharat Heavy Ele. Ltd., Abb Ltd., Aventis Pharma Bajaj Auto Ltd., Inter Link, Micro Techn. Through M/s. Alliance Intermediateries & Network Pvt. Ltd., amounting to ₹ 1,14,93,977/-. The information revealed that the companies floated by Shri Mukesh Chokshi were engaged in the business of issuing bogus bills for providing LTCG/Loss, Speculation profit or loss. Accordingly for the reasons recorded u/s. 147 of the Act, notice u/s. 148 dated 28.3.2011 was issued and duly served on the assessee. 6. The AO observed that during the year under consideration, the appellant had shown gain on share trading by way of speculation profit of ₹ 2,03,777/-, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd carefully gone through the orders of the authorities below and found from record that during the course of appellate proceedings the CIT(A) has called for remand report wherein the AO confirmed that as per the information received, the assessee had during the year entered into bogus/fraudulent billing activity with M/s. Alliance Intermediateries & Network Private Limited, in order to generate bogus Long Term Capital Gains. This information was obtained during the search operations in the case of M/s. Mahasagar Securities Pvt. Ltd., and its Directors Mukesh M. Chokshi & Jayesh K. Sampat. 10. In the remand, AO further observed that addition was made on account of speculation transaction of purchase and sales entry by the assessee and acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation. 12. On the other hand, learned DR relied on the order of the lower authorities. 13. We have considered rival contentions and carefully gone through the orders of the authorities below. We have also considered the remand report and documents to which our attention was invited by learned AR. From the record we found that AO has made addition of ₹ 1,14,93,977/- in respect of amount of shares purchased by the assessee. We found that as per the remand report, the shares so purchased were sold by the assessee on the very same date and profit has been booked in respect of these transactions without taking or giving delivery of shares. It is also finding of the AO in remand report that no payment has been made in respect of these pur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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