9911796707
TMI Blog2019 (1) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... as to prove the nature and source of credit appearing in his books of account. Here, from the perusal of the nature of credit, it is seen that the same has come through sales of shares which fact has also not been doubted by the Department. The source of money is through broker who has undertaken the transaction of the shares lying with the assessee purchased in the earlier years and same has been sold after paying due taxes in the form of STT. Thus, nature of the credit stands fully explained. If it is to be held that assessee has routed his own unaccounted money, then there has to be some material to provide live link nexus to show that the unaccounted money has been routed under the garb of transaction of purchase and sale of shares. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s affidavit. 3. After considering the reasons stated in the application for condonation of delay, I find that there was no fault on the part of the assessee for not pursuing the appeal, and therefore, in the interest of natural justice, we are condoning the delay and admitting the appeal for adjudication. 4. In various grounds of appeal, the assessee has challenged the addition of ₹ 30,19,500/- made u/s. 68 r.w.s. 115BBE on account of sale of equity shares. 5. The facts in brief are that assessee had declared Long Term Capital Gain on sale of shares of M/s. Jolly Plastics Industries Ltd. which was claimed as exempt u/s. 10(38). In response to the show cause notice, the assessee vide letter 27.06.2016 submitted the details of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed that assessee has failed to substantiate his claim which has been allowed by the Assessing Officer and accordingly he enhanced the quantum of addition u/s.68 to ₹ 30,19,500/- which was made by the Assessing Officer of ₹ 20,19,500/- He also took note of the analysis and the finding given by the Assessing Officer as to how the prices of the said shares had has increased manifold which is not backed by any financial fundamentals. Apart from that, M/s. Jolly Plastic Industries Pvt. Ltd. was found to be one of the penny stock involved in manipulation of share market which is even noted by the SEBI and also the purchases of the said shares have not been made through recognized stock exchange. Thus, purchase of the shares itse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said company in the Bombay Stock Exchange right from 06.12.2012 to 27.11.2014. Thereafter, he drew our attention to the list of shell companies published on 06.08.2017 and pointed out that M/s. Jolly Plastic Industries Ltd. is not appearing in such list. Further, the suspension of trading by the SEBI was done in January, 2015, i.e., much after the expiry of sixteen months from the date of the sale by the assessee. It is also not the case here this was the sole investment in shares made by the assessee. In fact assessee was a regular investor who has been investing in shares regularly. The Assessing Officer has not gathered any material or information from anywhere that assessee was any beneficiary of accommodation entry or there any stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ave also been reported by Kolkata Investigation Wing that the scrip of these companies have frequently used for providing accommodation entry. Thus, addition as sustained by the ld. CIT (A) needs to be confirmed. 10. After hearing the rival submissions and on perusal of the material referred to before us, I find that the assessee had purchased 10,000 equity shares of M/s. Jolly Plastic Industries Ltd. from a broker on 1st June, 2012 for ₹ 1,34,000/-. Thereafter, the shares were dematerialsed on 24.10.2013 showing the purchase of 10,000 share of M/s. Jolly Plastic Industries Ltd. The said shares have been sold for ₹ 30,19,500/- in the Bombay Stock Exchange through a recognized broker, South Asian Stock Ltd. who has traded t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of inquiry or investigation conducted by the Department or assessee has routed his unaccounted money in the garb of Long Term Capital Gain. The entire emphasis is on the fact that there is an astronomical rise in the price of the shares in BSE. From the perusal of the historic price of shares of M/s. Jolly Plastic Industries Ltd., it is seen that the price of the said shares had been steadily growing since December, 2012 and had reached to its zenith around October, 2013 and trading in such shares was continuing uptill January, 2015. It was only in January 2015, the SEBI has suspended its trading which was much after the assessee had sold the shares. Apart from that, the copy of balance sheet of M/s. Jolly Plastic Industries Ltd. as file ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
