9911796707
TMI Blog2015 (1) TMI 1410X X X X Extracts X X X X X X X X Extracts X X X X ..... ransfer deed for the sale of these shares, (c) the evidence of cash deposits in the bank account of the broker, Shri Rajendra Prasad Shah, indicating that accommodation entries were being provided by him, (d) the already exposed racket of brokers from Delhi and Kolkata providing bogus entries for share transactions generating capital gains, and (e) similar transactions in the shares of Nageshwar Investment Ltd. being proved bogus in the case of another assessee, all these facts clearly support the AO's conclusion that the income claimed as capital gains from sale of these shares actually represented assessee's undisclosed income from other sources. 3 The Ld. Commissioner of Income Tax (Appeals)-!!, Kanpur has erred in ignoring similar facts obtained with regard to alleged transaction in shares of Supreme Agro Products Ltd, in respect of which the assessee could not even produce bills for the shares and the brokers, M/s. D N Kansal Securities Pvt. Ltd., through whom these transactions were claimed, could not be traced at their given address. 4 That the order of ld. CIT(A)-II, Kanpur dated 18.6.2012 needs to be quashed and order dated 29.12.2006 passed by the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t market quotations. Others shares have lesser value does not in any way prove that the transaction was sham and influenced by any act of the assessee. 3. The A.O. stated that the assessee failed to produce transfer deeds. In this connection it is respectfully submitted that shares have been sold in the open market and while making any transfer of shares the transactions are routed - through the DMA T Account or by making physical delivery through the transfer deed. Shares of NIL were lodged with Karvy Consultants and shares of SAPL were transferred through transfer deeds which were appended with the shares and given to the share broker. Thus under the circumstances no transfer deed can be produced. 4. Summons were issued to D.N. Kansal Securities P Ltd at his address given on the bills, as alleged in the assessment order, but the same has been returned unserved. This does not mean that the transactions were sham. When nothing adverse has been brought on record and no material has been put for confrontation before the assessee no adverse inference can be drawn. 5. Purchase bills of shares of SAPL were not produced by the assessee. These were filed before the A.O. A copy of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing on record to affect adversely and the allegations of the A.O. are baseless as stated above. Commissioner of Income Tax vs Sent. Sita Devi Juneja (2010) 325ITR 593 (P&H) and Virinder Bhatia vs deputy Commissioner of Income Tax - held that it is settled law that, no addition can be made on the basis of surmises, suspicion and conjectures. Authorities must act in a fair and not partisan manner. The taxing authorities exercise quasi-judicial powers and in doing so they must act in a fair and not a partisan manner. Although it is part of their duty to ensure that no tax which is legitimately due from the assessee should remain unrecovered, they must also at the same time not act in a manner as might indicate that scales are weighted against the assessee. It is impossible to subscribe to the view that unless those authorities exercise the power in a manner most beneficial to the revenue and consequently most adverse to the assessee, they should be deemed to have exercised it in a proper and judicious manner - CIT v. Simon Carves Ltd. Officers should not do things in unreasonable manner - In administering a tax law irritation to the assessee is inevitable; an officer is bound to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee bank statements and other related details. The sale has been effected through DAAAT account based on the quotations of that day. The purchase of the shares has been accepted by the A.O., but only sale of the same has been doubted. Without the evidence, the suspicion has no role to play and accordingly additions cannot be made on conjuncture and surmises. The reliance is placed on the following cases : 1. 16 Taxman.com 161 Agra IT AT (TM) - Smt. Amita Agarwal Vs. ACIT The AO has treated the long-term capital gain in shares as sham and bogus and taxed the same as "income from other sources". The Hon'ble ITAT " (TM)" has deleted the addition and upheld the assessee's claim of long-term capital gain. This decision is reached after considering the following cases : (a) Brijesh Agarwal Vs. ACIT 40 SOT 475 Agra ITAT (TM) - 2010 - The addition made by the AO has been deleted. (b)ITO -1(3), Agra Vs. Smt. Pallavi Garg ITAT Agra - ITA NO. 192 / Agra 2. 2012- TIOL - 148- ITAT - KOL - ACIT Vs. Abhishek Agarwl - KOL - The addition made by the AO on account of purchase of shares at a lower price end sale of the same at the higher price on Kolkota Stock Exchange has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vestment was shown at 58.20; 64.25 and 58.20. Since the shares were sold on the rate quoted by the Stock Exchange and the transaction was effected through dmat account, the sale of shares should not have been doubted. In support of his contention, the ld. counsel for the assessee has also filed copy of share certificate of Supreme Agro Products Limited to show that the amount paid up per share was Rs. 10/-. The contract note from the broker is also filed on record. The ld. counsel for the assessee has further contended that in the light of this evidence, the transaction in shares cannot be doubted. The Assessing Officer has simply doubted the sale of shares without looking to the fact that shares were sold at the rates quoted at the Stock Exchange. Purchase of shares was never doubted by the Assessing Officer. Therefore, the capital gain declared by the assessee was rightly accepted by the ld. CIT(A). 8. Having carefully examined the orders of the lower authorities in the light of the rival submissions, we find that the Assessing Officer has not doubted the purchase of the shares. He has doubted the sale consideration of the shares, as there was substantial increase in the value o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
