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TMI Blog2019 (7) TMI 1514X X X X Extracts X X X X X X X X Extracts X X X X ..... ing rise to such capital gains. Though the assessee has received the amounts by way of account payee cheques, the transactions cannot be treated as genuine in the presence of the overwhelming evidences put forward by the Revenue. The fact that in spite of earning such steep profits, the assessee never ventured to involve himself in any other transaction with the broker cannot be a mere coincidence of lack of interest. Profits earned by the assessee are a part of major scheme of the accommodation entries we, hereby decline to interfere in the order of the ld. CIT(A). Appeal of the assessee is dismissed. - ITA No. 1006/Del/2019 : Asstt. Year : 2014-15 - - - Dated:- 25-7-2019 - Sh. H. S. Sidhu, Judicial Member And Dr. B. R. R. Kumar, Accountant Member Assessee by : Sh. Raj Kumar Gupta, CA Revenue by : Ms. Ashima Neb, Sr. DR ORDER Dr. B. R. R. Kumar, The present appeal has been filed by the assessee against the order of the Ld. CIT(A)-13, New Delhi dated 31.12.2018. 2. The assessee has raised following grounds of appeal: 1. That under the facts and circumstances, both the lower authorities err ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... account maintained with Union Bank of India pertaining to the sale of these shares. Before the authorities, the assessee has produced the following to prove the genuineness of the transactions. Regarding D-mat account : 1. Account opening form 2. Share dematerialization request form Regarding purchase of shares: 1. Copy of Application form for purchase of shares of Smartchamps IT Infra Ltd. 2. Bank statement reflecting share purchase dated 22.09.2011 3.Judgment of Bombay High Court approving amalgamation of Smartchapms IT Infra Ltd. to Cressanda Solution Ltd. 4. Share certificate issue by Cressanda Solution Ltd. 5. Transaction statement of D-materialization 5. The main arguments of the assessee of the ld. AR revolved around the facts that the shares were purchased in A.Y. 2012-13 through banking channel and through D-Mat a/c. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er relied on the order of the Co-ordinate Bench of ITAT in the case of Swati Luthra in ITA No. 6480/2017 wherein the case was decided in favour of the assessee on the grounds that Revenue could not point out any specific defect with regard to the documents submitted by the assessee. He relied on in the case of AA Estates Pvt. Ltd. in CA No. 3968 of 2019 (SC) and Yes Bank Ltd. CA No. 3148 of 2019 (SC) regarding the question of law. The ld. AR also tried to differentiate the case of Udit Kalra Vs ITO (ITA No. 6717/Del/2017) on the grounds that the referral value of this case goes away for the time being as the High Court has not framed any question of law. He tried to differentiate while the shares involved in the case of Udit Kalra are of Kappac Pharma Ltd. which was suspended temporarily by the SEBI, the present case involved shares of Cressanda Solutions Ltd. It was argued that the shares in the instant case have been purchased in cheque and the relevant bank statement has been provided and the shares have been purchased directly from the company. He reiterated his argument that the shares have been allotted by the way of amalgamation by the order of the High Court and no inquirie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... much of profit, the assessee has never embarked upon any transactions for investments with the broker or in any other dealing of shares. The revenue from operations of Cressanda Solutions Ltd. for the year March 2012 was ₹ 00 and, for the year March 2013 is ₹ 0.99 Cr. The financials of the company proving that the entity is a penny stock company are as under: Balance Sheet of Cressanda Solution ---------- in Rs. Cr. ----------- Mar 16 Mar 15 Mar 14 Mar 13 Mar 12 12 mths 12 mths 12 mths 12 mths 12 mths EQUITIES AND LIABILITIES SHAREHOLDERFUNDS Equity Share Capital 30.36 30.36 3036 30.36 9.00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Liabilities 0.01 0.10 24.14 22.99 0.00 Total Capital And Liabilities 29.30 29.81 53.68 53.98 1.79 ASSETS NON-CURRENT ASSETS Tangible Assets 0.03 0.04 0.05 0.06 0.00 Fixed Assets 0.03 0.04 0.05 0.06 0.00 Non-Current Investments 0.00 0.00 0.00 1.09 1.09 Long T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12mths 12mths 12mths 12mths INCOME Revenue From Operations [Gross] 0.00 0.00 6.44 0.99 0.00 Revenue From Operations [Net] 0.00 0.00 6.44 0.99 0.00 Total Operating Revenues 0.00 0.00 6.44 0.99 0.00 Other Income 0.03 0.17 0.14 0.07 0.02 Total Revenue 0.03 0.17 6.58 1.06 0.02 EXPENSES ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0.00 0.00 0.00 Total Tax Expenses 0.25 0.00 0.00 0.09 0.00 Profit/Loss After Tax And Before Extra Ordinary Items 0.42 -0.15 -1.44 0.40 -0.02 Profit/ Loss From Continuing Operations 0.42 -0.15 -1.44 0.40 -0.02 Profit/Loss ,For The Period 0.42 -0.15 -1.44 0.40 -0.02 Mar 16 Mar 15 Mar 14 Mar 13 Mar 12 12 mths 12 mths 12 mths ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ning such steep profits, the assessee never ventured to involve himself in any other transaction with the broker cannot be a mere coincidence of lack of interest. Reliance is placed on the judgment in the case of Nipun Builders and Developers Pvt. Ltd. (supra), where it was held that it is the duty of the Tribunal to scratch the surface and probe the documentary evidence in depth, in the light of the conduct of assessee and other surrounding circumstances in order to see whether the assessee is liable to the provisions of section 68 or not. In the case of NR Portfolio , it was held that the genuineness and credibility are deeper and obtrusive. Similarly, the bank statements provided by the assessee to prove the genuineness of the transactions cannot be considered in view of the judgment of Hon ble court in the case of Pratham Telecom India Pvt. Ltd., wherein, it was stated that bank statement is not sufficient enough to discharge the burden. Regarding the failure to accord the opportunity of cross examination, we rely on the judgment of Prem Castings Pvt. Ltd. Similarly, the Tribunal in the case of Udit Kalra, ITA No. 6717/Del/2017 for the assessment year 2014-15 has categorically ..... X X X X Extracts X X X X X X X X Extracts X X X X
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