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TMI Blog2022 (5) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... Year 2006-07. As in so far as cancellation of registration of M/s. Alliance Intermediaries and Network Pvt. Ltd. as sub-broker by the NSE through whom the assessee had sold shares of Buniyad Chemicals, it would not make the transaction of sale of shares bogus. By furnishing cogent evidence, assessee has discharged her onus in proving that she was holding the shares since 2004 and had sold the shares during the relevant period. The Revenue has neither controverted nor rejected the Demat account statement of the assessee. After examining the documents on record, we merit in the appeal of assessee. The addition made by the Assessing Officer by treating capital gain on sale of shares as income from other sources is directed to be deleted. - ITA NO.7067/MUM/2019 And ITA NO.7068/MUM/2019 And ITA NO.7069/MUM/2019 - - - Dated:- 21-2-2022 - Shri Vikas Awasthy, Judicial Member For the Appellant : Shri Devendra Kothari For the Respondent : Shri R.A. Dhyani ORDER These three appeals by the assessee are directed against the order of Commissioner of Income Tax(Appeals) -26, Mumbai [in short the CIT(A) ] Mumbai, dated 23/09/2019, common for the impugned Assessment Ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 132 of the Act was undertaken in the case of M/s. Mahasagar Securities Pvt. Ltd. by Investigation Wing on 25/11/2009. During the course of search, statement of Mukesh Choksi was purportedly recorded. On the basis of the said statement, the assessment for impugned Assessment Year in the case of assessee was reopened. During re-assessment proceedings it was alleged that since the assessee has failed to furnish proof of purchase of share of Buniyad Chemicals and that the said shares were sold through broker M/s. Alliance Intermediaries and Network Pvt. Ltd. whose registration was cancelled on 19/02/2004 the transaction of sale of said shares is not genuine. The ld. Authorized Representative for the assessee pointed that the assessee had purchased shares of Buniyad Chemicals. during the Financial Year 2000-2001. Admittedly, the assessee could not furnish any documentary evidence of purchase of share during the Financial Year 2000-01 as it was an old record. However the assessee in order to substantiate that the shares were in fact held by the assessee, the assessee furnished copies of the Balance Sheet as on 31/03/2002 to Balance Sheet as on 31/03/2005. The said Balance Sheets duly r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chemicals held by the assessee in Demat form. Merely, for the reason that registration of M/s. Alliance Intermediaries and Network Pvt. Ltd. as sub-broker was cancelled it would not make the transaction of sale of shares bogus. The Assessing Officer and the CIT(A) have confirmed the addition merely on assumption that since the registration of M/s. Alliance Intermediaries and Network Pvt. Ltd. was cancelled the transaction of sale of shares by the assessee through the aforesaid broker is bogus. The authorities below have failed to consider the fact that the shares were held by the assessee in her Demat account since long and the consideration for sales of shares was received by the assessee through banking channel. Thus, in the facts of the case it is evident that the money received against transfer of shares only be treated as capital gain, as disclosed in income tax return. The ld. Authorized Representative for the assessee further pointed that in the period relevant to Assessment Year 2006-07, the assessee had sold shares of Buniyad Chemicals through M/s. Mahasagar Securities Pvt. Ltd. The assessee disclosed the income as long term capital gain, exempt from tax. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D-mat account statement of the assessee for the period 01/09/2004 to 30/09/2004 (at page 9 of the Paper Book). An examination of Demat account statement of assessee clearly indicate that the assessee was having 32000 shares of Buniyad Chemicals as on 01/09/2004. Thus, it can be safely concluded that the assessee had acquired shares of Buniyad Chemicals prior to 01/09/2004. The assessee has also placed on record Demat account statement for the period 01/08/2006 to 31/08/2006. The opening balance of Buniyad Chemicals shares in the Demat account of the assessee is 23600 . The assessee sold 8500 shares of Buniyad Chemicals during Financial Year 2006-07, which were debited in the Demat account on 07/08/2006. The closing balance as per Demat account statement as on 31/08/2006 was 15100 shares. The transaction of 8500 shares during the financial year 2006-07 is further substantiated by contract note at page 19 to 21 of the Paper Book. The assessee has also placed on record a copy of her bank statement with IDBI Bank to show that the assessee has received a sum of Rs.5,03,621.91 towards sale consideration of shares by clearing on 15/07/2006. This date is same as the date of sale of shares ..... X X X X Extracts X X X X X X X X Extracts X X X X
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