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TMI Blog2019 (1) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... ion for condonation of delay stating that after receiving of the order of the ld. CIT (A) on 22.03.2018, assessee has duly handed over the same to his Chartered Accountant, Shri Anil Mittal on 30.03.2015 to prepare and file the appeal before Tribunal and also paid the fees for filing. From time to time assessee was in touch with his CA, however, on 27.05.2018 when the assessee visited the office of the CA, he was informed that CA has expressed his inability to file the second appeal as he was not much conversant with the Tribunal matters. Thereafter, the assessee took steps and engaged different professionals and got the appeal prepared and same was filed on 01.06.2018 in support assessee has also filed his affidavit. 3. After considering ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as suspended by the SEBI vide notice dated 1st January, 2015. Thereafter, he made a detailed discussion by relying upon various judgments and general trend adopted by various persons, and held that assessee has introduced amount of Rs. 30,90,500/-, the source of which remains unexplained and are not satisfactory. Accordingly, he taxed the Long Term Capital Gain shown by the assessee @30% as provided u/s.115BBE and made addition of Rs. 20,19,500/-. 6. In the first appeal, the ld. CIT( A) noted that assessee has claimed benefit and declaration made in IDS 2016 scheme for sum of Rs. 10 lac towards capital gain u/s.10(38) which has been allowed by the Assessing Officer. He further observed that assessee has failed to substantiate his claim wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 05.11.2013 after the shares were sold through Bombay Stock Exchange through broker, South Asian Stock Ltd. for which the contract note has been placed in the paper book at pages 14 and 15 along with transactions statement of National Securities Deposit Ltd. which is given from pages 21 to 28 of the paper book. He further pointed out to the history of movement of share price of M/s. Jolly Plastic Industries Pvt. Ltd. to show how the shares had gradually increased and had reached at a peak of Rs. 317. At the time of sale, the listed price in the stock exchange was around Rs. 301 to Rs. 305 per share. He has given the history of daily quoted price of the said company in the Bombay Stock Exchange right from 06.12.2012 to 27.11.2014. Thereafter, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome for 31st March, 2013 was Rs. 6750.88 lacs and as 31st March, 2014 was Rs. 573.94 lacs and there was a purchase of stock-intrade of more than Rs. 568 lacs. Thus, the contention of the learned AO that Company has no financial worth is not correct. 9. On the other hand, learned Department Representative strongly relied upon the order of the AO and ld. CIT (A) and submitted that once the trading of the said company has been banned by SEBI, it goes to show that these are penny stock companies found to be rigging the price in the stock exchange for providing such kind of an entries to the so called investors. Such kind of companies have also been reported by Kolkata Investigation Wing that the scrip of these companies have frequently used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s suspended by SEBI; and * Secondly, prices of the shares of the said company were being manipulated without any financial fundamentals. Both the authorities have quoted the general modus operandi and catena of judgment including that of Hon'ble Supreme Court in the case of Sumati Dayal Vs. CIT (1995) 214 ITR 801 and Mc. Dowell & Co. Ltd., 154 ITR 148. 11. From the perusal of the entire assessment and appellate order nowhere there is any discussion or whisper that there is any material or information with the Department that assessee's name has appeared as a beneficiary of accommodation entry in any kind of inquiry or investigation conducted by the Department or assessee has routed his unaccounted money in the garb of Long Term Capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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. If the availability of shares is not in doubt then the sale of the same also cannot be doubted in wake of the evidences as discussed above. Even for the sake of repetition, it is reiterated that it is not a case here that any such information or material was found or discovered that the assessee beneficiary of any accommodation entry nor there is any such statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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