9911796707
TMI Blog2002 (2) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the broker to furnish certain information, could be treated as failure on the part of the assessee? (b) Whether, on the facts and in the circumstances of the case, the learned Tribunal was right in law, that where any transaction of shares, did not figure in the records of any stock exchange or in the company's office, could not be accepted as a genuine transaction? (c) Whether, on the facts and in the circumstances of the case, there was any evidence or material to support the findings of the learned Tribunal that the loss suffered on sale of shares Rs.70,075 was false claim? (d) Whether the said conclusion was based on conjectures, surmises or suspicion and on a failure to consider relevant evidence in the record judiciously ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and Co., who also failed to supply the names of the parties from whom the shares were purchased and to whom the shares were sold nor could it furnish the mode of placing the orders by the assessee. It also could not specify whether actual delivery was taken at the time of purchase or not. Not making a headway, the Income-tax Officer issued a letter to the Stock Exchange, New Delhi, calling for further information as to whether the transactions of sale and purchase of the shares had been registered there or not. He also made enquiries from Orkay Silk Mills Limited as to whether they had any information about the sale and purchase of shares in the name of the assessee. The transactions had neither been registered in the Stock Exchange nor i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssions and perused the orders. During the course of hearing, the Bench raised queries to learned counsel for the assessee about three points indicated by the learned Commissioner of Income-tax (Appeals) as well as the Assessing Officer. The first point was as to why the alleged broker, Bharat Bhushan and Co., could not give the names of the parties from whom the shares were purchased or to whom these were subsequently sold. Learned counsel replied that it was the fault on the part of that broker for which the assessee should not be punished. This explanation is not accepted as the broker was working as an agent of the assessee and what ever was expected by the assessee was supposed to be done by such agent which has failed and this failure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... broker to maintain proper books or records. However, the Income-tax Officer has not based the disallowance merely on this ground. He has made further inquiries to controvert the claim of the assessee. One important factor taken into account is that no payment was made by the petitioner either to the broker or the seller against the purchase of shares nor was any amount received by it when the shares were sold. Why a broker would lock up his own money for purchasing shares on behalf of the assessee is indeed not understandable and raises a serious doubt about the genuineness of the transaction. A broker cannot risk buying shares of the value of Rs.2,13,200 against the paltry advance of Rs.8,000. Another circumstance against the assessee is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken in a subsequent case by the Calcutta High Court in CIT v. Carbo Industrial Holdings Ltd. [2000] 244 ITR 422. In the present case no payment was made at the time of purchase nor was any payment received at the time of sale of shares. The transactions had been settled on the basis of the difference in sale and purchase value of the shares on the relevant dates. The only evidence produced by the assessee was copies of purchase and sale bills which were unnumbered and prepared on loose sheets. The particulars of neither the buyer nor the seller are available. Thus the transactions were not open to verification from any quarter. The view taken by the Tribunal is a possible view and is based on proper reasoning. Thus, in our opinion, no q ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
