9911796707
TMI Blog2024 (4) TMI 1145X X X X Extracts X X X X X X X X Extracts X X X X ..... spicion on account of the fact that the substantial quantum of capital gain and has been earned by the assessee on account of trading in respect of the said shares. Merely because trading in the shares of the said company was suspended on the Stock Exchange, in absence of any material brought on record to suggest that purchase and sales of said shares was bogus, the AO was not justified in absence of any material to support his finding that there has been collusion or connivance between the broker and the assessee for the introduction of his own unaccounted money, resulting into a bogus transaction. Decided in favour of assessee. - Honourable Mr. Justice Bhargav D. Karia And Honourable Mr. Justice Niral R. Mehta For the Appellant No. 1 : ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale of such shares. 2.3 The Assessing Officer, however, did not allow the claim of Long Term Capital Gain on the ground that purchase and sale of shared of Naisargik Agritech (India) Ltd. was a carefully executed plan to generate bogus Long Term Capital Gain as the shares purchased by the assessee was when the trading of the said company was suspended at B.S.E. from 10th April, 2000 and has sold between 23rd June, 2014 and 11th July, 2014 when the trading of shares was resumed after two-three months. 2.4 The Assessing Officer, therefore, was of the opinion that shares of the said company were actually purchased and sold to accommodate the beneficiaries. 2.5 Being aggrieved, the respondent assessee preferred appeal before the CIT (A), who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry of bogus long term capital gain. In the above case, shares of private companies were shown to have been purchased in cash and the later company was merged in a listed company and shares of Rs. 5/ were sold Rs. 485/-. The entire operation was managed by brokers. In the appellant's case, the purchase of share cannot be doubted as shares have been purchased directly from company at Ahmedabad where both appellant and the company are based, by making payment in cheque. The shares have been held in DMAT account for more than three years. There have been other cases also in which DIT (Inv.), Kolkata has conducted detailed inquiries and established the modus operandi of long term bogus capital gain in Kolkata based company where shares have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its unaccounted money. A transaction of purchase and sale of shares supported by contract notes, DMAT accounts and account payee cheque cannot be treated as bogus. The Honourable Gujarat High Court in the case of Commissioner of Income Tax 1 Vs. Maheshchand G. Vakil [140 Taxmann.com 326] has held that where assessee prove genuineness of share transactions by contract notes for sales and purchase, bank statement of broker, DMAT accounts showing transfer in and out of shares as also abstract of transactions furnished by stock exchange, AO is not justified in treating capital gain arising from sale of shares as unexplained cash credit. In the similar case, Honourable Gujarat High Court in the case of Commissioner of Income Tax 1 Vs. Himani M. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trading in respect of the said share was suspended for some time on the stock exchange. In the present case, no material has been brought on record to suggest that purchase and sale of shares were bogus. The Id. Assessing Officer has not brought any material to support his finding that there has been collusion or connivance between the broker and the assessee for the introduction of his own unaccounted money. In the present case, despite the assessee's specific request, по opportunity of cross examination was provided to the assessee on the basis of whose statements reliance has been placed to hold that the sale of shares was sham / bogus. 2.7 The Tribunal, while arriving at the above finding of facts, has also relied on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
