9911796707
TMI Blog2019 (8) TMI 1059X X X X Extracts X X X X X X X X Extracts X X X X ..... NCAP). 3. Brief facts of the case are that the AO has passed the Assessment Order dated 24th November, 2016. The AO passed the scrutiny assessment under section 143(3) of the Income Tax Act, 1961 (hereinafter 'the Act') wherein the trading loss of Rs. 6,89,049/- claimed by the Assessee Company [A Non-Banking Financial Company] engaged in trading of shares and securities - (page 5 of the Paper Book)] on sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" was disallowed by Assessing Officer (AO) and added back to the total income of the Assessee which action was confirmed by Ld. CIT(A). The Ld. CIT(Appeals) had confirmed the action of the Assessing Officer by disregarding the documentary evidences furnished by the Assessee Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he present case transactions of purchase and sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" were executed on the Bombay Stock Exchange in terms of the agreement between the Calcutta and Bombay Stock Exchange under section 13 of the Securities Contracts (Regulation) Act, 1956. The Ld. AR drew our attention to page 34 and 36 of the Paper-book wherein the said fact is discernible from a perusal of the Contract Notes, evidencing purchase and sale of 5000 shares of M/s. Comfort Fincap Limited or "COMFINCAP" is seen appearing at those pages respectively, wherein it is noted that at the bottom of the said Contract Notes the following statement was recorded with a "*" mark: ''Trades executed on the Bombay Stock Exchange in term ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Indovision Stock Broking Services Private Limited, a member of Calcutta Stock Exchange, the trade being executed on the Bombay Stock Exchange. [Page 36 PB] v. Bank statement evidencing receipt of sale proceeds from the broker viz. M/s. Indovision Stock Broking Services Private Limited through banking channel. [Page 37 PB] vi. De-mat statement of the Assessee Company for the period 1st April, 38 - 41,38 2013 to 31st March, 2014 wherein all the transactions of purchase and sale of shares and securities made by the Assessee Company, including transactions in the M/s. Comfort Fincap Limited or "COMFINCAP", were being reflected. [Page 38-41 PB] 6. The Ld. AR refers to the following judgments wherein loss incurred in the same scrip viz. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 22 of 2009, Order dt. 29.4.09] 9. The Ld. Counsel for the assessee submits that, the assessee has produced all the evidence within its command in support of the genuineness and correctness of the transactions. He submitted that the share transactions were done through recognized share broker firms on the stock exchange and that STT was paid on all transactions. He contended that the entire disallowance of the claim of the assessee was made based on suspicion. According to Ld. AR addition cannot be made in the case of the assessee wherein overwhelming evidence has been produced in support of the transactions and the sole reason was that the transaction of this scrip was suspended in the Calcutta Exchange whereas in the present case the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essing Officer which fact is evident from the documents filed at Para 5 (supra). The Assessing Officer has relied on the report of the investigation wing of the department. 14. It is noted that the assessee has purchased and sold shares through recognized broker. Copies of Contract notes, copies of payment through banks, De-mat statement and other evidences were filed in support of the genuineness of the transactions at Para 5 (supra). The AO has disallowed the claim of assessee on the sole reason that this scrip was suspended by Calcutta Stock Exchange from April, 2013 onwards. However, it has been brought on record by the assessee to demonstrate that the scrip is being traded even today. Moreover, from the contract note placed at Page 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , was not controverted by revenue authorities - Nothing was brought on record to show that persons investigated, including entry operators or stock brokers, had named that assessee was in collusion with them - Whether in absence of any finding specifically against assessee in investigation wing report, impugned addition made under section 68 to income of assessee was unjustified." 16. Applying the propositions of law laid does in this case-law to the facts of the case on hand, I delete this addition as the entire addition was made on wrong assumption of fact as discussed in Para 14 (supra) and based on the documents produced by the assessee which is mentioned at Para 5 (supra) I am inclined to allow the claim of the assessee and direct the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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