9911796707
TMI Blog2019 (1) TMI 402X X X X Extracts X X X X X X X X Extracts X X X X ..... cordingly, ground of the appeal is set aside to the file of the ld AO with above direction. Short term capital gain addition - Addition based on the information received from M/s. Multiplex Capital Ltd u/s 133(6) - Held that:- The claim of the assessee is that he has incurred the loss of ₹ 146160/- in trading of shares and ₹ 43851/- for future and option trading. It is further stated that he has also earned profit of ₹ 20632/- from the jobbing activities. As while calculating the income, the opening and closing stock of securities have not been considered by the AO, respect to different account of transactions entered into by the assessee for future and option as well as of jobbing, further, the claim of the assessee that he has incurred loss of ₹ 146160/- in trading of shares, we set aside the whole issue back to the file of the ld AO with a direction to the assessee to demonstrate before the ld AO about the amount of the profit earned by the assessee or loss incurred by the assessee in various transaction. The ld AO may examine the same and decide the issue afresh Addition on account of payment by the assessee to M/s. Multiplexes capital ltd. - asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Brief facts of the case shows that the assessee is an individual, derived its income from salary, business and other sources. The assessee is also engaged in trading of shares. The assessee filed its return of income on 31.03.2010 declaring total income of ₹ 154473/-. The assessment u/s 143(3) of the Act was passed on 31.03.2010 declaring total income of ₹ 41,24,573/-. The assessment u/s 143(3) of the Act was passed on 26.12.2011 where three additions were made (i) additions of ₹ 3392703/- as undisclosed payment towards various credit cards; (ii) short term capital gain of ₹ 318925/-; (iii) undisclosed payment to M/s. Multiplex Capital Ltd of ₹ 258472/-. The assessee preferred an appeal before the ld CIT(A), who dismissed the appeal of the assessee vide order dated 31.01.2013 and therefore, aggrieved assessee has preferred this appeal before us. 3. The ground No. 1 relates to the confirmation of the addition of ₹ 3392703/- as undisclosed payment towards various credit cards. During the assessment proceedings the assessee has made payment towards credit cards and was asked to furnish the source thereof. Assessee submitted that these are b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide his letter dated 29.10.12, the second Paper Book (dated 28.12.12) gave the details of bank accounts from only 3 Banks, leaving out the bank accounts from 2 Banks. Further, it is also seen that even the second Paper Book did not give the complete details of all the Credit Cards, as against Credit Cards from 8 organizations admitted by the Appellant vide his letter dated 29.10.12, the second Paper Book (dated 28.12.12) gave the details of Credit Cards from only 7 of those 8 organizations mentioned, leaving out the Credit Cards from Indslnd , which was mentioned in point no. 5| of the Submissions dated 29.10.12 as one of the organizations from which Credit Cards were held by the Appellant. Thus the second Paper Book did not give the complete details of all the Credit Cards also. However, it was noticed that the Second Paper Book gave the details of Credit Cards from Deutsche , though this was not mentioned in the written Submissions dated 29.10.12 filed by the Appellant. Thus even the written Submissions dated 29.10.12 did not give the complete picture and the full details of all the Credit Cards or even all the organizations from which the Assessee had Credit/Cards. 8.4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 Card 7. HSBC- 1 Card HSBC HSBC- 2 Cards 8. SCB SCB- 27 Cards 9. Indslnd Total 7 Organizations, 10 Cards 8 Organizations, No. of Cards unspecified 8 Organizations, 41 Cards 8.7 Thus it is seen that the Appellant never came out with the truth and the exact number of Credit Cards and even the exact specification of the organizations from which the Credit Cards were obtained. Though both the Submissions dated 29.10.12 and the Second Paper Book (dated 28.12.12) mention the number of organizations from which Credit Cards w'ere obtained as 8, but perusal of the above chart shows that these not the same and the Submissions dated 29.10.12 show that Credit Cards were obtained from Indslnd also, but no Credit Cards from this organizations is mentioned in the Second Paper Book (dated 28.12.12) which specifies 41 Credit Cards, but none from I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... another card or from my bank accounts. . 8.10 It is seen that despite the Ld. Counsel of the Appellant admitting on 28.12.12 that there are 2 or 3 more Credit Cards, the Appellant rather than giving the details of those undisclosed Credit Cards has made the false claim that the photocopies of all the Credit Cards have already been filed. In fact, the details filed are not the exact photocopies of all the accounts and most of them are typed accounts. However, it is seen that on one hand, the Ld. Counsel admitted on 28.12.12 that there are 2 or 3 more Credit Cards whose details have not been given, and on the other hand. Submissions dated 28.12.12 are filed on 02.01.13 that copies of all the Credit Cards have been already given, which is a totally false claim. 8.11 Another false claim made in the above Submissions dated 28.12.12 filed on 02.01.13 is that all the payments are from one Card to another or from bank accounts. Perusal of the accounts filed with the Second Paper Book (dated 28.12.12) show that there are substantial Cash Deposits in some of these accounts. Some of the details of the Cash Deposits (which are obviously not complete as all the Credit Cards and ban ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ₹ 20,000/- 13. 24 Karnatka Bank 5492500100086801 21.08.2008 |Rs. 13,500/ Total Rs.8,18,500/- 8.12 Thus it is seen that even in the incomplete accounts given by the Appellant an amount of ₹ 8,18,500/- deposited in cash has been noticed during the appellate proceedings for which no details or explanation has been given and the Appellant claims that the payments were from one Credit Card to another. It is also seen that there are other significant transactions (other than cash) for which no details or explanations have been given. For instance in the Axis Bank Account No. 371010100006743 appearing on page 26 of the Second Paper Book (dated 28.12.12), there is a credit entry of ₹ 5,00,000/- on 13.06.2008 by cheque no. 535827, in which the particulars are mentioned as BY CLG/ZN MICROUT/SET 78 . It has not been explained how and from where this large credit has been received by the Appellant. This entry of ₹ 5,00,000/- is neither part of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he claim made by the assessee is false. The ld AR stated that the assessee is having 41 credit cards and the details of these cards have been provided to the ld AO and most of the transaction are credit card transfer. He, therefore, submitted that the source of the transaction is the balance transfer facility availed from another credit card. As it is not income such addition cannot be made. 5. The ld DR vehemently submitted that the assessee has failed to furnish the complete details and therefore, the addition has been made. 6. In rejoinder the ld AR vehemently referred to various pages of the paper book, wherein, at page 1 and 2 he has given the details of loan from one credit card to another credit card. He submitted that these details have not been verified by the ld AO and hence, addition is not proper. 7. We have carefully considered the rival contentions and also perused the orders of the lower authorities. The fact shows that assessee is having 41 credit cards with various banks. The assessee has debited ₹ 3392703/- in the various credit cards towards outstanding amount. As per the details furnished at page 1 and 2 of the paper book, it is evident that depos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned profit of ₹ 20632/- from the jobbing activities. As while calculating the income, the opening and closing stock of securities have not been considered by the AO, respect to different account of transactions entered into by the assessee for future and option as well as of jobbing, further, the claim of the assessee that he has incurred loss of ₹ 146160/- in trading of shares, we set aside the whole issue back to the file of the ld AO with a direction to the assessee to demonstrate before the ld AO about the amount of the profit earned by the assessee or loss incurred by the assessee in various transaction. The ld AO may examine the same and decide the issue afresh. Accordingly, Ground No. 2 of the appeal is set aside to the file of the ld AO. 12. Ground No. 3 of the appeal is with respect to the addition of ₹ 258472/- on account of payment by the assessee to M/s. Multiplexes capital ltd. The assessee failed to show the source of payment to the broker and hence additions was made by the ld AO and confirmed by the ld CIT(A). 13. The ld AR submitted that these are the not the payment made by the assessee to the broker but payment made by the broker to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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