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TMI Blog2022 (10) TMI 336X X X X Extracts X X X X X X X X Extracts X X X X ..... alue of sale was Rs.66.01 lacs whereas the sum of the trade value of sale was only Rs.40.08 lacs. Similarly, the sum of the purchase value of the trade mentioned by the AO of Rs.4.71 lacs is totally different from that of the assessee of Rs.20.32 lacs and same is the case with regard to number of trade while we agree that there has to be minimal sufficiency of the primary satisfaction for reopening of the case, in the instant case, we find that even the minimal sufficiency of the fact is absolutely lacking. The quantity, value and the number of trades are also incorrect the reasons recorded. Hence, owing to the entire factual content, we hold that the reasons recorded are faulty, incorrect and not based on the facts, we hold that the not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tified in holding that the transactions relating to sale and purchase of shares resulted in bogus Long Term capital Gain and was a sham transaction. 5. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in confirming the addition of Rs 40,47,573/- incorrectly and invalidly made by the AO. 6. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in rejecting, the claim of the assessee of earning genuine Long Term capital Gain, only on the basis of doubt, suspicion and human probability. 7. On the facts and in the circumstances of the case and in law the CIT(A) was incorrect and unjustified in rejecting the claim Long Term capi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment through Bank 1 29.12.2010 8,112 14.81 1,20,185/- 29.12.2010 2 16.02.2011 10,000 18.76 1,87,606/- 18.02.2011 TOTAL 18,112 33.57 3,07,791/- 6. Post sub-division total number of shares including purchased becomes 3,18,112 shares. The assessee sold following shares of GCML on Bombay Stock Exchange in lots on different dates after holding them for more than 15 months on payment of STT: S.No. Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for introducing the undisclosed income in the books without paying taxes. The AO held that the shares were transferred to the beneficiaries at a very nominal price mostly offline through preferential allotment or offline sale to save STT. The Assessing Officer has also held that the analysis of the information available on record shows that the assessee has purchased share through stock exchange and the balance capital gain (shares) are not traded through stock exchange. The AO has also theorized that the prices of the shares are manipulated at 20 to 25 times of the face value. The AO has also held that the operators rig the price of these stocks and gradually rise its price many times, often 500 to 1000 times. Hence, he had reasons to beli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee made 25 times and sometimes theoretically 500 to 1000 times of the face value whereas the assessee sold the shares on online through stock exchange at the prevalent market rate. The AO alleged that the shares are generally obtained by preferential allotment whereas the shares have been purchased by the assessee from the open market. The AO alleged that enquiries have been conducted by SEBI in Global Capital Market Ltd. shares whereas the revenue could not prove to the fact that such enquiries were indeed conducted by SEBI. The assessee is also found to have purchase shares at Rs.18.76 and sold at Rs.18.47 and some scrips purchased at Rs.14.81 and sold at Rs.18.71 shows the regularity of transactions and earning of profits and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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