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TMI Blog2018 (11) TMI 1842X X X X Extracts X X X X X X X X Extracts X X X X ..... nied that the demat account shows the transactions of purchase and sale of shares. All these facts show that the very reason, on which the AO made the impugned addition would fail. The various case laws relied upon by the assessee support her claim. Accordingly we are of the view that the Ld CIT(A) was justified in deleting the impugned addition made by the AO. - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... group. The Learned DR, in particular, invited our attention to the report of Investigation Wing, wherein it is stated that broker licence of M/s. Alliance Intermediaries & Network Pvt. Ltd. has been cancelled. 6. On the contrary, the learned AR submitted that the main license of M/s Alliance Intermediaries & Network P Ltd was not cancelled and it is only the sub-brokers licence was cancelled. He further submitted that M/s. Alliance Intermediaries & Network Pvt. Ltd. has reported share transaction details to the Income Tax Department and hence shares purchased by the assessee through them have been duly reflected in annual information report received by the Assessing Officer. He submitted that the AO has also mentioned the same in the assessment order also. He submitted that this fact alone would prove that the assessee has purchased shares through M/s. Alliance Intermediaries & Network Pvt. Ltd. He submitted that the assessee has made payments for purchases through banking channels. He further submitted that the Assessing Officer has placed his reliance on the general statement given by Shri Mukesh Choksi. He submitted that Shri Mukesh Choksi has not identified transactions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s sold through Kotak Securities could not have been sold had they not been genuinely purchased by the Appellant. Even if it is assumed that the shares were first sold through Kotak Securities then the Appellant would have had to purchase the shares to square off the transactions. Your Honour may kindly note from the datewise scrip report that the Appellant has not purchased the same shares subsequently after the date of sale. Thus, it can be safely and easily concluded that the sales have taken place after purchases only and that all purchases are genuine." The sale of the shares can be evidenced from the scripwise details of shares purchased and sold. 3.10 Further, as regards the observation of the AO that the Appellant had transferred shares to Kotak few days before the sale, the Appellant submitted that :- 1. that the Assessing Officer has observed in the assessment order that the shares were transferred to Kotak Account few days before the sale. a. In this regard, at the outset, the Appellant firstly wishes to clarify that it is entirely upto the Appellant's choice and prerogative as to how and when the shares should be transferred from one demat account to ano ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... again controverted the same. The Appellant has also relied on the decision of the jurisdictional Hon'ble Bombay High Court in the case of ADIT v. Miss Lata Mangeshkar, 97 ITR 696 wherein it has been held that where the evidence suffered from severe infirmities, the additions cannot be made in the books of the assessee merely on the basis of the entries found in the third party books. The statement of Mr. Mukesh Chokshi states that he had mainly issued accommodation entries through M/s. Alliance Intermediaries & Network Pvt. Ltd, Goldstar Finvest and Mahasagar Securities. The AO has relied on the said statement without verifying the fact of the quantum and value of the entries entered into by the Appellant with M/s. Alliance Intermediaries & Network Pvt. Ltd and the entries already recorded by the Appellant for which all the supporting details and documents were provided by the Appellant to the AO. Further, the AO has been unable to verify the details claimed by Mr. Mukesh Chokshi through M/s. Alliance Intermediaries & Network Pvt. Ltd of the accommodation entries provided through the National Stock Exchange of India. In view of these facts, the addition made by the AO is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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