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TMI Blog2010 (10) TMI 1208X X X X Extracts X X X X X X X X Extracts X X X X ..... issue arising out of materially similar set of circumstances which were heard together. As a matter of convenience, therefore, all the appeals are being disposed off by way of this consolidated order. 2. Brief facts of the case are that Shri Jayant B. Patel, owns proprietary business concern in the name and style of M/s. Universal Taste Maker and M/s. Universal Flavours & Fragrance, being run from the premises 07, 120 and 133, New Apollo Industrial Estate, Morga Village Road, Andheri (East), Mumbai. The assessee had interest in the companies M/s. Unique Aromatics P. Ltd. and M/s. Specialty Food Ingredients P. Ltd. the business of these concerns is manufacturing and sale of proprietary items being food flavours made from combination of spi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s; Exempt U/s 10(32) (1,419) 26,034 Gross Total Income 13,71,278 Less: Deduction under Chp.VIA U/s 80L Dividend & Bank Intt. 6,034 U/s 80D Mediclaim 7,498 13,532 Total Income 13,57,746 Add: Agriculture Income 4,00,000 Total Income 17,57,746 5. The assessee, in his capacity as "HUF", filed return of income declaring total income of ₹ 19,49,171 under the head "Income From Business or Profession, "Income From Other Sources" and "Income From Capital Gains", as under:- Business Income Net Profit as per P&L A/c 5,33,157 Add: Declared Profit 9,45,000 14,78,157 Long Term Capital Gain as per shares Sale Price 4,86,110 Less: Without Index Cost 30,000 4,56,110 4,61,014 Income From Other Sources Interest On Bank F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsul- tancy 8000 2001-02 456965 484965 3. Cheryl J. Patel ATN Intl. Ltd. - do - HMV Consul- tancy 8700 2001-02 364442 386192 4. TOTAL 1737611 841261 TABLE-C S.No. Assessee Scrip Purchase Broker Shri Narendra R. Shah Sale Broker No. of shares Sale in A.Y. Amount Of Long Term Capital Gain 1. Jayant B. Patel Painter Poly Ltd., Impex Ltd. Sanjeev & Co. 2001-02 2003-04 2007-08 13500 4400 908959 476733 482284 Nil 508720 517000 2. Jayant B. Patel (HUF) Tripex Ltd. G.R. Pandya Share Broking Ltd. 2001-02 2007-08 4000 356192 487840 Nil 520000 3. Punit J. Patel Tripex Ltd. G.R. Pandya Share Broking Ltd. 2007-08 4000 486640 518800 TOTAL 4185824 7. The Assessing Officer observed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as bogus. He further observed that for these transactions, a sum equivalent to 5% of the gross amount was payable for the services obtained. He, accordingly, held that the assessee, on the date when he supposedly earned long term capital gain, was in possession of unexplained money to the extent of suppressed gross sale of shares amounting to ₹ 19,39,063, which were as follows. S.No. Scrip A.Y. Bogus Long Term Capital Gain Gross sale of subject share, being amount cr. In the bank a/c 5% fee et. Paid for bogus LTCG 1. ATN Intl Ltd. 2001-02 9,16,204 9,70,104 48,505 2. Planter Poly Ltd. 2001-02 9,08,959 9,68,959 48,408 3. Triplex Ltd. Total: 18,25,163 19,39,063 96,953 8. He also made addition of 5% towards servic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A), 125 ITR 713 (SC), held that before the Income-tax authorities could rely upon the third party statement, they were bound to produce it before the assessee so that the assessee could controvert the statements contained in it by asking for an opportunity for cross examination. If any evidence is to be placed by the Assessing Officer in the statement of any third party, that party must be offered for cross examination to the assessee. In this case, the assessee had an office in Bombay and one in Madras. On receiving information that a sum of ₹ 1,07,350 was remitted by the assessee by two telegraphic transfers from Madras to Bombay through a bank, the Income-tax Officer wrote two letters dated 14th January and 10th February 1955 to t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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