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TMI Blog2024 (5) TMI 501X X X X Extracts X X X X X X X X Extracts X X X X ..... ayment have been received through Banking Channel and Security Transaction Tax has been paid by Stock Exchange. Thus, all the conditions for availing exemption have been fulfilled. As truly contended that under Income Tax Act there is no provision which requires the Assessing Officer to investigate the genuiness of the shares because these share are listed, issued by the Company and records are maintained with the Register of Companies. Thus, these shares cannot be said to be bogus shares as have been issues and subscribed under the Companies Act. The revenue has failed to appreciate that how these shares can be termed as Bogus Shares, when these shares have been issued by the Company incorporated under the Companies Act by following the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ms. Veena Mandlik, Learned Counsel For the Respondent : Shri Manoj Munshi, Learned Counsel With Shri Hitesh Chimnani, Learned Counsel, Shri Aditya Goyal, Learned Counsel, Shri Ashish Goyal, Learned Counsel ORDER Heard on I.A. No. 6928/2022(in ITA No. 121/2022), I.A. No. 6927/2022 (in ITA No. 122/2022) and I.A. No. 1750/2024(in ITA No. 183/2023) for condonation of delay. For the reasons stated in the applications, the same are allowed. Delay in filing the appeals are hereby condoned. Also heard on the question of admission. This order shall govern the disposal of aforesaid ITA Nos. 56/2021, 58/2021, 64/2021, 65/2021, 88/2021, 95/2021, 96/2021, 98/2021, 99/2021, 100/2021, 102/2021, 103/2021, 109/2021, 110/2021, 111/2021, 112/2021, 113/2021, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubstantial question of law, as is required to be made out under Section 260A of the Act of 1961, that being the prerequisite of admission of the appeal. 6. The brief facts of the case are that respondent had purchased shares on private placement from M/s. Santoshi Maa Lease and Finance and Investment Pvt. Ltd. after due diligence and following sequence of events which has been narrated by learned ITAT in para 16 of the order. This company later was amalgamated with M/s. Sunrise Asian Limited, a listed company on Bombay Stock Exchange under an order passed by Hon'ble Bombay High Court. 7. That, soon after amalgmation, there was sudden jump in the share price on the Stock Exchange due to involvement of speculators and players of stock exc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... annot bind the respondent. The learned ITAT, in absence of any coroborative evidence is not bound to blindly accept such report. She further contended that the investigation has gathered sufficient material and that the learned ITAT failed to consider that the abnormal increase in price of shares of M/s. Sunsrise Asian Ltd. were not comensutrate with the financial strength of the company. Further, investigation Wing has gathered sufficiet material before concluding that the alleged transaction is a sham transaction and has been carried out accross the country through various brokers. Abnormal increase in price of shares of M/s. Sunsrise Asian Ltd. were not comensutrate with the financial strength of the company. Learned counsel for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(38) the respondent has lawfully claimed exemption by complying the conditions to avail exemption which includes share should be listed on Stock Exchange, Share should have been purchased thro ugh Stock Exchange and through Banking Channel and Security Transaction Tax(STT) has been paid thereon. The shares of Sunrise Asian Ltd. are listed on Bombay Stock Exchange, shares have been purchased through D-mat Account and payment have been received through Banking Channel and Security Transaction Tax has been paid by Stock Exchange. Thus, all the conditions for availing exemption have been fulfilled. It is further contended that under Income Tax Act there is no provision which requires the Assessing Officer to investigate the genuiness of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings nor filed by the department before ITAT or before this Court. It is settled law that no material can be used against the assessee without providing the assessee to examine it and, if required, to cross examine. Thus, there was violation of principles of natural justice. That on similar set of facts and in respect of the same share script of M/s Sunrise Asian Ltd. the Mumbai Bench of ITAT in case of (1) Narayan Ramchandra Rathi(Page nos.50 to 61), (2) Dipesh Ranmeshchandra Vardhan(Page nos. 62 to 71) and, (3) Anraj Hiralal Shah(page nos.72 to 74) has dealt with the identical issue and decided in favour of the assessees. 13. Learned counsel for the respondent further submitted that as many as three High Courts i.e. Delhi High Court, Bom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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