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TMI Blog2019 (2) TMI 226X X X X Extracts X X X X X X X X Extracts X X X X ..... eavily on the authorities below in the present case is that . Once the SEBI has held that there is no adverse evidence or material that there was any violation of provision of PFUT regulation in respect of Kailash Auto Finance Limited and restrain order on the trading has been revoked, then it follows that the share price of which has been sold for genuine quoted price and therefore, the sale proceeds has to be reckoned from sale of such shares and would be treated as explained credit or investment. Accordingly, on the facts and circumstances of the case, we hold that the long term capital gain shown by the assessee is genuine and consequently liable for exemption u/s 10(38). - Decided in favour of assessee. - ITA No. 93/Del/2018 And ITA N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relied upon as the AO did not allow the Appellant to cross examine Shri Sunil Dokania and 16 other persons despite a specific request having been made by the Appellant. ( iv) Documentary evidence filed to prove long term capital gain of ₹ 36,38,067/- on sale of shares have neither been controverted nor disproved by the Ld.CIT(A)/AO. ( v) The Ld. CIT(A)/AO had not brought anything on record to prove that the Appellant had routed her own unaccounted money in the garb of long term capital gain. ( vi) Provisions of sections 68 of IT. Act in terms had no application to the facts of Appellant's case. 2. That the levy of interest under section 234 are illegal and at any rate, without prejudice, the interest as l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oss Amount ₹ 37,40,701/- net amount ₹ 37,35,000/- 3. Thereafter, Ld. AO held that scrips of M/s. Kailash Auto Finance Ltd. were used by entry providers for providing bogus accommodation entries and also noted that in some other matter in the course of proceedings u/s 131 before Investigation Wing Kolkata, one Chartered Accountant had confirmed that he has provided accommodation entry in the scrip of M/s. Kailash Auto Finance Ltd. and based on such statement of Chartered Accountant, he drew adverse inference that this is also same kind of accommodation entry. After detailed discussion, he treated the long term capital gain of ₹ 36,38,067/- as he taxed the same u/s 69. 4. Ld. CIT (A) too has confirmed the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rojects Advisory Limited, shares of Kailash Auto Finance Ltd. was acquired by the assessee. This has been confirmed by the company videe allotment vide letter dated 6.8.2013. The assessee has sold these one lac shares of Kailash Auto Finance Ltd. through Bombay stock exchange on the following dates :- Dated 2.8.2013 for 10,000 shares Dated 5.8.2013 for 30,000 shares Dated 6.8.2013 for 40,100 shares Dated 27.9.2013 for 19,900 shares Assessee has also paid STT and has received sale consideration through account payee cheques amounting to ₹ 37,38,067/- duly credited to the assessee s bank account of the assessee, copy of which has been placed at pages 59-6- of the paper book. He further submitted that, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne lac and in one and a half year has sold it at more than 37 times. This shows that how scrips have been manipulated for providing such long term capital gain. 8. On perusal of the material placed on record, we find that in so far as purchase of shares is concerned the same has not been doubted, because AO while adding the long term capital gain has given the benefit of price paid for acquisition of shares. Shares were also purchased through account payee cheque duly reflected in the books and shown by the assessee in the earlier year. In fact assessee has purchased shares of Capital Projects Advisory Limited in the financial year 2011-12 and the said company was merged with M/s. Kailalsh Auto Finance Ltd. vide amalgamation order dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gs in respect of violation of provisions of the PFUTP Regulations in respect of the following 244 entities (against whom directions were issued vide the interim order and / or confirmatory orders) warranting continuation of action under section 11B/r/w11 (4) of the Act. The details of the 244 entities are as follows. And vide para 8 there is direction of revocation. Thus, SEBI also did not find any prima facie material for manipulation of price of scrip of Kailash Auto Finance Limited. If AO had found out that scrips of Kailash Auto Finance Limited was used by certain persons for providing accommodation entry, then he should have carried out some prima facie inquiry to find out whether assessee too was involved in routing her own una ..... X X X X Extracts X X X X X X X X Extracts X X X X
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