9911796707
TMI Blog2025 (2) TMI 1072X X X X Extracts X X X X X X X X Extracts X X X X ..... ll apply to the present case, since the Ld.AO has not established that the assessee was involved in price rigging and further, the AO did not find fault with any of the documents furnished by the assessee.
AO has assessed the amount as unexplained cash credit under section 68 of the Act. It is pertinent to note that the purchase of shares made in earlier year was accepted by the revenue. The sale of share has taken place in on-line platform of BSE and the consideration has been received through stock broker through banking channel. So these transactions cannot be taken as unexplained cash credit under section 68 of the Act. Related to payment of brokerage, no such evidence was established by the Ld.AO, as to whether the assessee has paid the amount to the broker or not. So the addition under section 69 is deleted - Appeal of assessee allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... ch was claimed as exempt under section 10(38) of the Act. The Ld.AO treated the sale consideration of the LTCG as bogus on ground that said company does not deserve such a huge hike of sale price. Accordingly, he disbelieved the market price. The entire sale was made through Bombay Stock Exchange (BSE) and the purchase and sale transaction was made through banking channel as also that the shares are delivered in the demat during the purchase and sale. The assessee has completed this transaction through the broker, M/s Religare Securities Ltd. An investigation was conducted by the Director of Investigation, Kolkata and the cash trail was duly verified and during the course of search and survey actions, the investigation Wing of Kolkata has also covered the regional office of M/s Religare Securities Ltd where the assessee is registered and that this share broker is also involved in registering bogus clients, who have not at all any existence. The Ld.AO also alleged that this share price was artificially rigged and manipulated beyond its normal pricing with connivance of share brokers with guidance of various entry operators wherein the illegal money was converted in legal money in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... artment of Kolkata. The Ld.AO has not made any separate investigation related to the transactions of assessee. The assessee is already dealing with different shares and during alleged year, the assessee earned loss and gain on sale of shares. The details of the sale of shares is annexed in APB page 26, which is reproduced as below: - MUKESH P SHAH H.U.F. STATEMENT OF LONG TERM CAPITALGAIN ON SALE OF SHARES FOR FY - 2013-14 Sr. No Date Stock Qty RATE (Rs.) TRADE VALUE (Rs.) BROKEWRAG E,STT & Other Exps (Rs.) NET SALES (Rs.) PURCHASE DATE PURCHASE COST (Rs.) GAIN / LOSS 1 30.1013 Lasen & Toubro Ltd 120 968.90 116,268.00 467.64 115,800.36 6.6.2004 30,500.00 85,300.36 2 11.12.13 SRK Industries FV 5 8000 195.05 1,560,400.00 6,201.76 1,554,198.24 25.5.2012 18,017.60 1,536,180.64 3 11.12.13 Steel Exchange 400 46.13 18,452.00 65.95 18,386.05 12.6.2004 9,600.00 8,786.05 4 11.12.13 Ashapura Mine 200 62.60 12,520.00 44.52 12,475.48 4.5.2005 15,400.00 (2,924.52) 5 11.12.13 Dena Bank 50 55.45 2,772.50 40.23 2,732.27 7.4.2006 3,050.00 (3,174.43) 6 11.12.13 Hindustan Mot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and it was not shown that the assessee was a part of the group, which was involved in the alleged prices rigging of the shares. Accordingly, he submitted that the tax authorities are not justified in disbelieving the transactions of shares carried on by the assessee. In support of his submission, he placed reliance on various case laws." 7. He respectfully relied on the order of the co-ordinate bench of ITAT in the case of Chirag Tejprakash Dangi vs ITO, Ward 26(1)(5) in ITA No. 3256/Mum/2022, date of order 20/02/2024 where the Bench has taken the view related to the LTCG in favour of the assessee, whether all the transactions are made through banking channel and the relevant documents are duly filed before the revenue authorities were not considered as a bogus transaction. 8. The Ld.DR argued that the price was jacked up to Rs. 195 from less than Rs. 1 in 18 months. She further stated that the said broker of the assessee, M/s Religare Securities Ltd was also involved in registering bogus client and price rigging. The Kolkata Investigation Directorate has undertaken investigation into 84 pennystocks and accordingly, the modus operandi was same with all the companies. It is revea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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