9911796707
TMI Blog2024 (11) TMI 1298X X X X Extracts X X X X X X X X Extracts X X X X ..... uffering STT. Due reduction of shares have also been made from the Demat statement of the assessee to the extent of sales made by the assessee. Hence, it could be safely concluded that the very basis of formation of belief of the learned AO that income has escaped assessment in the reasons recorded is fallacious. AO also refers to split of the shares of SRDL which had happened in the year 2015 so as to allege malafide motive on the part of the assessee. But it is pertinent to note that assessee herein had actually sold the shares in June, 2014 itself much before the act of splitting of shares. Hence, we have no hesitation to hold that the case of the assessee does not fall under modus operendi mentioned in the reasons recorded by the AO the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax (Appeals)-30, New Delhi [hereinafter referred to as ld. CIT(A) , in short] in Appeal Nos. 10670/2014-15 (dated 22.09.2022) and 10258/2019-20 (dated 16.08.2021) against the orders of assessment passed u/s 147 of the Income-tax Act, 1961 (dated 24.01.2022) and u/s 143(3) of the Income-tax Act, 1961 (dated 11.12.2019) by the Assessing Officer, ACIT, Central Circle-29, New Delhi (hereinafter referred to as ld. AO ). 2. Though the assessee has raised several grounds before us, he has challenged the assumption of jurisdiction for reopening of assessment under section 147 of the Act in addition to challenging the action of the lower authorities in denying claim of exemption under section 10(38) of the Act in respect of Long Term Capital Gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rket through a registered share broker. The said sale of shares duly suffered STT. The relevant documents evidencing the purchase of shares in IPO, Dematting the same, payments being made by account payee cheque, contract notes issued by a registered share broker and sale proceeds of shares getting credited in assessee s bank account through regular banking channel are enclosed in pages 12-18 of the paper book of the assessee. 4. The learned AO in para 2 of the assessment order observed that an information was received through CRIU Module of insight portal that as per the enquiries conducted by Investigation Wing, Mumbai, it was established that shares of SRDL were used as accommodation entries to provide bogus Long Term Capital Gains to va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment Ltd. had issued shares to a few related persons and entities such as M/s. Sarvottam Advisory Pvt. Ltd. and M/s. Massive Massive Management Consultancy Pvt. Ltd. (now known as M/s. Chandanmal Bothara Jewellers Pvt. Ltd). These parties had then sold these shares to other parties, including the beneficiaries. The share were then heavily traded to artificially inflate the price. Also information obtained that the company SRDL had not performed any business even after its listing in BSE. Hence, in nut shell, information received that the shares of SRDL were issued in an arrangement to provide a channel to route the unaccounted money of the beneficiaries. It was observed that the unaccounted money of the beneficiaries was routed back to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the assessee. But it is pertinent to note that assessee herein had actually sold the shares in June, 2014 itself much before the act of splitting of shares. Hence, we have no hesitation to hold that the case of the assessee does not fall under modus operendi mentioned in the reasons recorded by the learned AO thereby making his entire formation of belief per se fallacious. Accordingly, the reasons recorded does not have live link to the formation of belief of the learned AO vis- -vis the facts of the instant case. Hence, the reopening made under section 147 of the Act is based on incorrect assumption of facts and accordingly, liable to be quashed. Since, the reassessment is quashed, the other ground raised by the assessee on merits ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion), the assessee had declared cash sale of Rs. 7,59,60,175/- which is nothing but assessee was trying to convert his unaccounted income in to the accounted income due to demonetization period thereby resulting in sales being increased by 7200% when compared to earlier year. The assessee explained that during the year under consideration in June, 2016, he had got the business opportunity to become the consignment agent by entering in to an agreement with M/s. D.S. Chewing Products LLP and M/s. Dharmapal Satyapal Ltd. In view of the said agreement, the sales of the assessee grew manifold in cash during the year under consideration. Hence, it was submitted that cash sales declared during the year would not be comparable with that of the ear ..... X X X X Extracts X X X X X X X X Extracts X X X X
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