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TMI Blog2024 (4) TMI 1238X X X X Extracts X X X X X X X X Extracts X X X X ..... ps.
Reasons given to delete the addition in case of assessee's family will apply mutatis mutandis for this appeal also. Accordingly, the addition made by the AO is on similar grounds is directed to be deleted. Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... f Demat account and the copy of balance sheet for the earlier assessment year showing the investment in the said shares. These shares were later on sold between 01/06/2011 to 27/07/2011 at Rs. 9,46,32,977/- declaring long term capital gain of Rs. 8,58,82,977/-. The said shares were sold online through Bombay Stock Exchange. In support of the transaction of both purchase and sale of shares, assessee had submitted following documents:- a Complete details of bank accounts held by the Appellant. b. Details of Long term capital gains on sale of shares. c. Copy of allotment of shares. d. Demat account. e. Copy of contract notes for sale of shares. f. Copy of ledger account of the Brokers. g. Copy of bank pass book highlighting payment for purchase and sale of shares through banking channel. 7. The ld. AO analysed the financials and listing of price in stock exchange for the few years of Shri Ganesh Spinners, which has changed its name to M/s. Yantra Natural Resources Ltd, having its registered office at Hyderabad. From the analysis of financials, he observed that there is not much substantial worth to justify increase in share price. The share price of the said company was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee that assessee was part of any beneficiary of accommodation entry. He has also relied upon various judgments of the Tribunal. 10. Ld. DR was directed to produce any investigation carried out on this scrip or order passed by SEBI as mentioned by the ld. AO and whether the SEBI has carried out any investigation or enquiry and found about any manipulation of digging of the price in stock exchange and whether trading of the scrip was granted by the SEBI at any point of time. 10.1 In response, Ld. DR has filed the papers from the website of the SEBI and informed that shares of Yantra Natural Resources Ltd., (erstwhile Shri Ganesh Spinners Ltd) was last traded at Rs. 0.31 and since it has not been paid annual listing fees in violation of SEBI its listing was closed much subsequently. However, he fairly submitted that the report of SEBI was in the case of M/s. Gavit Industries Ltd. wherein name of Shri Ganesh Spinners Ltd., and Shri Shirish Chandrakant Shah has been referred for some loan transaction. Ld. DR then referred to the various observations of the ld. AO and submitted that the price movement of the shares of the company was bell shaped curve which shows that it is a typi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord like details of exit providers and whether something has been found that the price was rigged in the stock exchange for providing accommodation entry or there is any reference of the assessee in such investigation. Once assessee has filed the documents for purchase and sale of shares which has already been accepted during the course of original assessment proceedings u/s. 143(3), then to dislodge such evidences and the claim having been accepted in scrutiny assessment earlier, then something should be brought on record to corroborate the finding or report of the investigation or some kind of information; like information about exit providers who have specifically confirmed the purchase of shares from stock exchange to facilitate the accommodation entry; or SEBI has found some discrepancy in manipulation of the price in stock exchange; or found some kind of irregularity leading to inference that this scrip was used only for converting unaccounted money to claim long term capital gain; or to facilitate parties in buying and selling of the shares for bogus claim; or there was any ban on the trading of the scrip. There is nothing on record that this company was investigated and f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Smt. Pawanben Pannalal Gulecha, the assessee is an individual deriving income under the heads 'income from house property', 'income from other sources' and 'capital gains', had filed return of income on 16/07/2010 declaring income of Rs. 4,34,650/-. The assessee had shown long term capital gain of Rs. 1,66,27,310/- on sale of 7,00,000 shares of Prraneta Industries. Besides this, assessee had also shown some long term capital gain in other scrips also which is not in dispute. The ld. AO based on information received from DGIT-Investigation, Mumbai regarding beneficiaries of accommodation entries, on the basis of search conducted by Investigation Wing in the case of Shri Shirish Chandrakant Shah and that assessee was also part of belt in the scrip of Prraneta Industries Ltd. which was treated to be bogus, the case of the assessee was reopened u/s. 147 by notice dated 31/03/2016. The ld. AO observed that in the list of companies managed and controlled by Shri Shirish Chandrakant Shah, it was seen that Prraneta Industries Ltd. on 18/11/2008 and 20/11/2008 on the bolt of BSE through its broker Network Stock Broking Ltd. The payments for purchase of shares were made by account pay ..... X X X X Extracts X X X X X X X X Extracts X X X X
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