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TMI Blog2022 (11) TMI 1061X X X X Extracts X X X X X X X X Extracts X X X X ..... Applying the said doctrine, we have no hesitation to hold that the transaction of purchase and sale of shares of SRK Industries under consideration before us is void ab-initio, this is nothing but sham, make believe and colourful device adopted with excellent paper work with intention bringing the undisclosed income into books of account. Accordingly, we confirm the orders of the Assessing Officer as well as the ld. CIT(A) and find no merits in the appeal preferred by the assessee before us. Appeal filed by the assessee stands dismissed. - ITA No.816/PUN/2018 - - - Dated:- 22-11-2022 - Shri Inturi Rama Rao, Accountant Member And Shri S. S. Viswanethra Ravi, Judicial Member For the Assessee : None For the Revenue : Shri Ram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... padhyaya and Shri Akash Agrawal who are directors of the M/s. Mobixa Distributors Pvt. Ltd. alleged to be involved in providing accommodation entries bogus long term capital gains by adopting modus operandi as set out in para 11 of the assessment order. During the course of assessment proceedings, the appellant had failed to substantiate that the transactions of purchase and sales of shares is genuine one. In the circumstances, the Assessing Officer brought to tax the sale proceeds of the shares as unexplained cash credit and completed the assessment. 3. Being aggrieved by the order of assessment, an appeal was filed before the ld. CIT(A) contending that the assessee had proved the genuineness of the transactions of purchase and sales of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings, the Assessing Officer noticed that the appellant had indulged in suspicious suspicious transaction relating to long term capital gains on sale of shares and relating to claim of appellant for exemption of Rs.51,32,174/- u/s 10(38) and sale of shares of M/s SRK Industries Limited. The appellant purchased 6500 shares of Transcend Commerce Limited (hereinafter TCL) @ Rs.10 per share for an amount of Rs.65,000/- on 29.10.2012 from Shubhmangal Sales Pvt. Ltd, which is Kolkata based broker. The bill does not bear any serial number, SEBI approval number and registration number of the broker, (page no. 26 of the Paper book dated 19.12.2017). The payment of Rs.65,000/- was made on 29.10.2012 from IDBI Bank A/c. The TCL subsequently ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l gains. During the course of assessment proceedings, the Assessing Officer had called upon to substantiate the genuineness of the transactions of purchase and sale of shares in the light of the findings as set out in para 14 at page 8 and 9 of the assessment order. The Assessing Officer also furnished the copies of the statement recorded from entry providers as well as the directors of the dummy company. It is born on record that despite the adequate opportunity afforded to the appellant, the appellant had failed to rebut the findings of the Assessing Officer. In the circumstances, the Assessing Officer made addition of sale proceeds of the shares invoking the provisions of section 68 of the Act. Even on appeal before the ld. CIT(A), th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2022 held in the context of availment of alleged forged DEPB under the Customs Act, wherein, it was found DEPB licenses were forged and it was held that the exemption benefit availed on such forged DEPB are void ab initio on the principle that fraud vitiate everything and the period of limitation was held to have no application and the Department was held to be justified in invoking the extended period of limitation and the fact that whether the beneficiary had no knowledge of about the fraud/forged and fake DEPB licenses have no bearing the imposition of custom duty. The ratio of judgement is squarely applicable to the transaction under consideration before us. Further, the application of principle of the fraud under judicial Acts was cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... een opined that fraud and collusion vitiate even the most solemn proceedings in any civilised system of jurisprudence. It has been defined as an act of trickery or deceit. The aforesaid principle has been reiterated in Roshan Deen v. Preeti Lal [AIR 2002 SC 33], Ram Preeti Yadav v. U. P. Board of High School and Intermediate Education and other [(2003) 8 SC 311] and Ram Chandra Singh v. Savitri Devi and others [(2003) 8 SCC 319]. 23. In State of Andhra Pradesh and another v. T. Suryachandra Rao [AIR 2005 SC 3110] after referring to the earlier decision this court observed as follows:- In Lazaurs Estate Ltd. v. Beasley [(1956) 1 QB 702] Lord Denning observed at pages 712 713, No judgment of a Court, no order of a Minister can b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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