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TMI Blog2017 (9) TMI 1773X X X X Extracts X X X X X X X X Extracts X X X X ..... rities have simply placed reliance on the statement given by Shri Mukesh Choksi. When the documentary evidences, that too external evidence, support the case of the assessee, I find no reason in placing reliance solely on the general statement given by Shri Mukesh Choksi. The cancellation of registration of the broker license of M/s Alliance Intermediary, in my view, would not nullify the evidences furnished by the assessee, since the payments and delivery of shares have been proved. As contended by Ld A.R, the assessing officer has not brought any material on record to disprove the evidences furnished by the assessee. There is no reason to suspect the genuineness of purchase and sale transactions of shares. Accordingly set aside the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the AO. Copies of bills for purchase and sale of shares, bank pass book and relevant depository account statement are enclosed herewith. 2. On 17-03-2015, the AO has issued notice u/s 142(1) stating that the registration of the broker as sub-broker of NSC is cancelled by SEBI on 19-2-2004. Therefore the bills of purchase and sale of shares submitted by assessee are bogus. In view of the above, the assessee was asked to show cause as to why the claim of short term capital loss of ₹ 16,52,414/- should not be disallowed. Copy of notice enclosed. 3. In response to the said notice, M/s R.L. Sangoi Co, AR of the assessee have submitted a reply dated 19-3-2015 wherein it was brought to the notice of the AO that the said transactio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specific admission by Shri Mukesh M. Choksi in respect of transaction in shares done by the assessee as bogus. Further assessee has provided the copies of bills for purchase and sale of shares, copy of ledger account as per the books of accounts of the broker and also all the purchase and sale of shares were duly reflected in the depositary account of the assessee. Also the payment to the broker as well as the receipts from the broker are through proper banking channels and duly reflected in the bank account of the assessee. It is true that Shri Mukesh M Choksi has created bogus long term capital gain for some persons in some companies owned and managed by him. However, in the present case the transactions in question are resulting into ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... res of companies which are listed in the stock exchanges and still traded therein. He submitted that the consideration for purchase and sale of shares have been routed through banking channels and further the stocks have entered into the depository account of the assessee. Accordingly he submitted that there is no reason to suspect the genuineness of purchase and sale of shares. He further submitted that the AO has simply relied upon the statement given by Shri Mukesh Choksi, without considering the evidences/documents furnished by the assessee. The Ld A.R also invited my attention to the following submissions made in the written submissions:- 7. It is respectfully submitted that the Assessing Officer and CIT(A) except stating that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) wrongly relied on the facts that in the case of MIs. Mahasagar Securities Pvt. Ltd. for A.Y. 2002-03 the Hon. Tribunal held that M/s. Mahasagar Securities Pvt. Ltd. had provided accommodation entries and earned the marginal commission because the assessee has not dealt with M/s. Mahasagar Securities Pvt. Ltd. and the transactions of the assessee were carried out in the years 2006 and 2007. Ninthly, neither the A.O. nor the CIT(A) had referred to any direct evidence to show that the said transactions of purchase and sale of the shares of the said four companies were not genuine. On the contrary the evidence shows that the shares were transferred in the name of the assessee by the companies and thereafter credited in the demat account of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration also stands proved. It is not the case of the AO that the price of purchase/sales was not in tune with market rates. The assessee has furnished evidences to support the claim of purchase and sales in the form of broker notes, the bank statements and de-mat statements. In my view, these documents sufficiently prove the genuineness of purchase and sale of shares. 7. On the contrary, the tax authorities have simply placed reliance on the statement given by Shri Mukesh Choksi. When the documentary evidences, that too external evidence, support the case of the assessee, I find no reason in placing reliance solely on the general statement given by Shri Mukesh Choksi. The cancellation of registration of the broker license of M/s Allian ..... X X X X Extracts X X X X X X X X Extracts X X X X
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