PRAMILA PATEL, CHENNAI V. ITO, NCW - 10 (3), CHENNAI

ITA 1827/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2053 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2009-2010
• Appeal Filed On: 13-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Opportunity of cross examination; Cost of acquisition; Accommodation entries; Sham transactions; Capital Gains
• Section: 133A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, D (SMC) BENCH : CHENNAI , . , [BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ] !' ./I.T.A. NO.1827/CHNY/2019. #$% &$ / ASSESSMENT YEAR : 2009-2010. PRAMILA PATEL, NO.27, GNT ROAD, PUZHAL, CHENNAI 600 066. VS. THE INCOME TAX OFFICER, NON CORPORATE WARD 10(3) CHENNAI. [PAN AEIPP 1044H] ( / APPELLANT) ( /RESPONDENT) !' '( ) * / APPELLANT BY : NONE +,'( ) * /RESPONDENT BY : MS. R. ANITHA, IRS, JCIT. # - ) . /DATE OF HEARING : 30-09-2019 /0 &% ) . /DATE OF PRONOUNCEMENT : 05-12-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-12, CHENNAI (CIT(A) FOR SHORT) DATED 28.02.2019 FOR THE ASSE SSMENT YEAR (AY) 2009-2010. ITA NO.1827 /2019 :- 2 -: 2. T HE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL. THE RETURN OF INCOM E FOR THE AY 2009-10 WAS FILED ON 25.03.2010 DISCLOSING TOTAL IN COME OF RS. 1,76,750/-. SUBSEQUENTLY BASED ON THE INFORMATION RECEIVED FROM DDIT (INV) UNIT III(2), CHENNAI THAT ASSESSEE MADE PAYMENT OF 17,91,000/- TO ONE MS. LEENA SURANA, A STOCK BROKE R WHO ADMITTED DURING THE SURVEY OPERATIONS CARRIED IN HER PREMIS ES THAT SHE WAS INDULGING IN PROVIDING BOGUS CONTRACT NOTES IN OR DER TO ENABLE CERTAIN ASSESSEES TO COLOUR THEIR UNACCOUNTED CASH AS ACCOU NTED MONEY IN THE FORM OF LONG TERM CAPITAL GAINS. ACCORDINGLY, THE ASSESSING OFFICER ISSUED NOTICE U/S.148 OF THE ACT ON 21.03.2016 AND DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FO UND THAT THE FOLLOWING LONG TERM CAPITAL GAINS CLAIMED BY THE AS SESSEE IS BOGUS. NAME OF THE COMPANY DATE OF SALE SALE PRICE DATE OF PURCHASE PURCHASE COST CAPITAL GAINS SEPCTACLE LTD (FORMERLY KHAITAN WEAVING MILLS) TCS LTD AND KOTAK BANK 13.03.2009 20.03.2009. 25.03.2009 653430 438375 694840 18.06.2007 18.06.2007 18.06.2007 97774 66487 102965 5,55,655 3,71,888 5,91,875 THE ASSESSING OFFICER TAKING NOTE THE FOLLOWING INF ORMATION ISSUED SHOW CAUSE NOTICE DATED 28.11.2016. ITA NO.1827 /2019 :- 3 -: 6. THE DE-MAT STATEMENT OF THE ASSESSEE WAS OBTA INED AS PER WHICH THE SHARES WERE CREDITED TO THE ACCOUNT OF TH E ASSESSEE ONLY ON 06.3.2009, 12.03.2009 AND 19.03.2009 AND WAS DEB ITED THE SAME DAY ITSELF. THIS IS CONTRARY TO THE DATE OF P URCHASE MENTIONED BY THE ASSESSEE AS ON 18.06.2007 IN THE COMPUTATION OF LONG TERM CAPITAL GAINS SHOWN IN PARA ABOVE. 7. THE FACT THAT THE ASSESSEE HAD PURCHASED THE SHA RES AND SOLD THEM THE SAME DAY ITSELF IS CONFIRMED FROM THE INFO RMATION RECEIVED FROM DDIT (LNV). LN THE SWORN STATEMENT RECORDED BY DDIT (INV),UNIT LLL(2),CHENNAI ON 26.11.2009 FROM SMT.LEELA SURANA, SHE HAS GIVEN THE MODUS OPERANDI USED FOR COLOURING UNACCOUNTED M ONEY AS ACCOUNTED, WHICH IS REPRODUCED BELOW: ANY CLIENT , WHO WISHES TO CONVERT HIS UNACCOUNTED CASH INTO AN ACCOUNTED ONE, WILL APPROACH AND HAND OVER THE UNAC COUNTED CASH TO ME, FOR THE ABOVE SUM, I SELECT AN APPROPRI ATE SHARE AND WILL PREPARE A BOGUS CONTRACT NOTE AT AN EARLIE R DATE THIS UNACCOUNTED CASH WILL BE DEPOSITED IN MY BANK ACCOU NT. FROM THIS BANK ACCOUNT , I WILL PURCHASE THE SHARES AS M ENTIONED IN THE BOGUS CONTRACT NOTE FOR THE AMOUNT GIVEN BY THE CLIENT IN MY NAME ONCE THE ENTIRE CASH IS RECEIVED ,I WILL TRANS FER THESE SHARES TO THE CLIENTS NAME .THE CLIENT SUBSEQUENTLY WILL SELL THESE SHARES AND WILL SHOW THE DIFFERENCE BETWEEN T HE PURCHASE PRICE MENTIONED IN THE CONTRACT NOTE AND THE CURREN T MARKET PRICE AS LONG TERM CAPITAL GAIN . THE CLIENT FOR THE PURC HASE PRICE MENTIONED IN THE CONTRACT NOTE WILL MAKE ACCOMMODAT ING ENTRIES LIKE THE CASH BALANCE IN HIS BOOKS OF ACCOUNTS FOR THE BACK DATE MENTIONED IN THE CONTRACT NOTE 8. THE ABOVE STATEMENT CONFIRMS THAT THE ASSESSEE H AS INDEED PAID CASH OF RS.6,55,000/- ON 05.03.2009, RS.4,44,,000I- ON 09.03.2009 AND RS. 6,96,000/- ON 17/03/2009 TOTALLING RS.17,91 ,000/- TO MS. LEELA SURANA. SHE HAS USED THIS CASH TO PURCHASE SH ARES OF SPECTACLE LTD.(FORMERLY KHAITAN WEAVING MILLS) AND SOLD THEM THE VERY SAME DAY. THE ASSESSEE HAS THEN BROUGHT INTO H ER BOOKS OF ACCOUNTS THE SALE CONSIDERATION AS ON SALE OF SHARE S BOUGHT MORE THAN 12 MONTHS AGO FOR WHICH MS.LEELA SURANA HAD IS SUED BOGUS CONTRACT NOTES. THUS THE ASSESSEE SOUGHT TO BRING H ER UNACCOUNTED MONEY RS.17,91,000/- INTO HER BOOKS AS ACCOUNTED MO NEY. 9. THE MODUS OPERANDI USED BY THE STOCK BROKER, MS. LEELA SURANA, TO HELP VARIOUS PERSONS ,ONE OF WHICH WAS THE ASSES SEE ,TO COLOUR THEIR UNACCOUNTED MONEY AS ACCOUNTED IS GIVEN IN HE R SWORN STATEMENT ,EXTRACT OF WHICH IS AS FOLLOWS: ITA NO.1827 /2019 :- 4 -: 5.PLEASE EXPLAIN AS TO WHY YOU HAVE RECEIVED THE AB OVE MONEY IN CASH? ANS: SINCE THE MONEY WHICH ARE DEPOSITED IN CASH AR E ACTUALLY THE UNACCOUNTED MONEY OF THE PERSONS, THEY HAVE GIV EN IT IN CASH. 6. I AM SHOWING YOU FEW LOOSE SHEETS IMPOUNDED AT T HIS PREMISE (ANN/ES/LS/IMPJ. PLEASE EXPLAIN THE CONTENTS? ANS: THE LOOSE SHEETS WHICH ARE SHOWN TO ME CONTAIN S THE LISTS OF THE NAMES AND ADDRESSES OF THE PERSONS AND ALSO THE DETAILS OF THE UNACCOUNTED CASH GIVEN BY THEM TO ME AT VARI OUS DATES. 7. PLEASE EXPLAIN ABOUT THE USAGE OF THE ABOVE CASH AFTER RECEIPT. ANS : ONCE THE CASH IS RECEIVED BY ME .1 GENERALLY DEPOSIT THE ABOVE MONEY IN THE ABOVE MENTIONED BANK ACCOUNTS. T HIS MONEY ,I USE IT FOR PURCHASING VARIOUS SHARES FROM THE ABOVE MENTIONED SHARE BROKERS. 8. PLEASE EXPLAIN THE MOTIVE/PURPOSE FOR WHICH VARI OUS INDIVIDUALS GIVE THEIR UNACCOUNTED MONEY TO YOU? ANS: THE INDIVIDUALS HAVE DONE THIS TO CONVERT THEI R UNACCOUNTED MONEY INTO ACCOUNTED ONE. 9. PLEASE EXPLAIN IN DETAIL HOW THE UNACCOUNTED CAS H GIVEN BY THEM ARE CONVERTED INTO ACCOUNTED MONEY? ANS: THESE INDIVIDUALS BY CLAIMING LONG TERM CAPITA L GAINS WHICH IS ACTUALLY EXEMPT AND BY SHOWING INCOME THROUGH IN TRADAY SHARE TRANSACTIONS, CONVERT THEIR UNACCOUNTED MONEY AS ACCOUNTED ONE. THE WHOLE PROCESS IS EXPLAINED BELOW . A) I PREPARE BOGUS CONTRACT NOTES IN THE NAMES OF V ARIOUS INDIVIDUALS FOR PURCHASING SHARES ON BEHALF OF THOS E INDIVIDUALS. THE BOGUS CONTRACT NOTES WILL CONTAIN THE DETAILS S UCH AS THE NAME ,ADDRESS AND PAN OF THE INDIVIDUALS , NAME OF THE SECURITY (SHARE),ORDER NO. , QUANTITY OF SHARES, BROKERAGE A ND THE NET AMOUNT .THE NET AMOUNT INDICATES THE PURCHASE PRICE OF THE SHARES PURCHASED BY ME ON BEHALF OF THE INDIVIDUAL MENTIONED IN THE CONTACT NOTE. THE CONTRACT NOTE IS ACTUALLY A B OGUS ONE SINCE THE PURCHASE OF SHARES WAS NEVER DONE BY ME. B) THE BOGUS CONTACT NOTES ARE PREPARED AT BACK DAT E MOSTLY FOR THE YEAR 2007. THE SHARES ARE SELECTED IN SUCH A WA Y THAT THEIR MARKET PRICE AT PRESENT, ARE MANY TIMES THE MARKET VALUE AS ON 2007. ITA NO.1827 /2019 :- 5 -: C) ANY CLIENT ,WHO WISHES TO CONVERT HIS UNACCOUNTE D CASH INTO AN ACCOUNTED ONE, WILL APPROACH AND HAND OVER THE U NACCOUNTED CASH TO ME. FOR THE ABOVE SUM, I SELECT AN APPROPRI ATE SHARE AS MENTIONED IN THE PREVIOUS POINT AND WILL PREPARE A BOGUS CONTRACT NOTE AT AN EARLIER DATE. THIS UNACCOUNTED CASH WILL BE DEPOSITED IN MY BANK ACCOUNT. FROM THIS BANK ACCOUN T ,I WILL PURCHASE THE SHARES AS MENTIONED IN THE BOGUS CONTR ACT NOTE FOR THE AMOUNT GIVEN BY THE CLIENT IN MY NAME. ONCE THE ENTIRE CASH IS RECEIVED, WILL TRANSFER THESE SHARES TO THE CLIE NTS NAME. THE CLIENT SUBSEQUENTLY WILL SELL THESE SHARES AND WILL SHOW THE DIFFERENCE BETWEEN THE PURCHASE PRICE MENTIONED IN THE CONTRACT NOTE AND THE CURRENT MARKET PRICE AS LONG TERM CAPI TAL GAIN WHICH IS ACTUALLY EXEMPT. D) THE CLIENT FOR THE PURCHASE PRICE MENTIONED IN T HE CONTRACT NOTES WILL MAKE ACCOMMODATING ENTRIES LIKE THE CASH BALANCE IN HIS BOOKS OF ACCOUNTS FOR THE BANK MENTIONED IN THE CONTRACT NOTE. E) FOR SOME OTHER CLIENTS, WE PREPARE BOGUS CONTRAC T NOTES TO SHOW AS IF INTRADAY SHARES TRANSACTION WAS DONE AND THE INCOMES THROUGH SUCH TRANSACTION WAS SHOWN AS THE S OURCE OF PURCHASE OF SHARES. 10. FROM THE TRANSACTION STATEMENT OBTAINED FROM MA DRAS STOCK EXCHANGE LIMITED IN WHICH CENTRAL DEPOSITORY SERVIC ES INDIA LTD , A DEPOSITARY PARTICIPANT, IT IS SEEN THAT DATE OF TRA NSFER OF SHARES OF SPECTACLE INDUSTRIES LTD, BOTH CREDIT AND DEBIT, WA S 06.03.2009,12.03.2009 AND 19.3.2009, IT WAS ALSO GA THERED THAT THE SAID SHARES WERE BROUGHT IN FROM A POOL ACCOUNT, WH ICH IS MAINTAINED WITH MSE SECURITIES LTD., A SUBSIDIARY O F MADRAS STOCK EXCHANGE LTD. ON THE TRANSACTION STATEMENT OBTAINED FROM THE SAID DEPOSITORY PARTICIPANT. IT IS SEEN THAT THE SAID SH ARES WERE TRANSFERRED FROM THE POOL ACCOUNT OF ONE MS. LEELA SURARA ON 06.03.2009,12.03.2009 AND 19.32009, AND THE SAME WE RE TRANSFERRED BACK TO THE POOL ACCOUNT ON THE SAME DA TE. IT IS EVIDENT THAT YOU POOL ACCOUNT ON THE SAME DATE. IT IS EVID ENT THAT YOU HAVE NOT PURCHASED THE SHARES AND IT IS ONLY A SHAM TRAN SACTION THROUGH WHICH UNACCOUNTED CASH HAS BEEN BROUGHT INTO AS ACCOUNTED ONE. CALLING UPON THE ASSESSEE AS TO WHY THE BOGUS LONG TERM CAPITAL GAINS SHOULD NOT BE DISALLOWED. IN RESPONSE OF WHICH ASSE SSEE VIDE LETTER ITA NO.1827 /2019 :- 6 -: DATED 05.12.2016 SOUGHT TO CROSS EXAMINE THE SAID M S. LEELA SURANA, THE BROKER. HOWEVER, THE ASSESSING OFFICER DENIED T HE ASSESSEE THE OPPORTUNITY OF CROSS EXAMINATION AND COMPLETED THE ASSESSMENT BY MAKING THE ABOVE ADDITIONS. 3. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE LD. CIT(A), WHO VIDE IMPUGNED ORDER CONFIRMED THE ACTION OF THE ASSESSING OFFICER, WHEREIN IT WAS HELD AS FOLLOWS. 5.9 I HAVE EXAMINED THE FACTS OF THE CASE IN THE LIGHT OF THE CROSS EXAMINATION PROCEEDINGS, REMAND REPORT AND THE SUBM ISSIONS OF THE APPELLANT. THE RE-ASSESSMENTS PROCEEDINGS WERE CONDUCTED ON THE BASIS OF THE REPORT OF THE DEPUTY DIRECTOR OF I NCOME TAX (INVESTIGATION) THAT THE APPELLANT RECEIVED CASH PA YMENTS TO THE STOCK BROKER SMT. LEELA SURANA TO FACILITATE ENTERI NG INTO BOGUS CONTRACTS NOTES TO ENABLE THE APPELLANT CLAIM LONG TERM CAPITAL GAINS (LTCG) THROUGH SHAM TRANSACTIONS. A SURVEY UN DER SECTION 133A WAS CONDUCTED IN THE PREMISES OF SMT. LEELA SU RANA ON 26/11/2009 AND SHE ADMITTED THAT SHE RECEIVED CASH PAYMENTS FROM THE APPELLANT. SHE ALSO CLEARLY MENTIONED THE DATE AND AMOUNT FOR WHICH BOGUS CONTRACT NOTES WERE ISSUED. THESE DETAILS ARE MENTIONED IN THE ASSESSMENT ORDER. APPELLANT CL AIMED INCOME FROM LONG TERM CAPITAL GAINS WHICH ARE EXEMPT UNDER SECTION 10(38) OF THE IT ACT. THE APPELLANT HAS CLAIMED THA T THE PURCHASES WERE DONE ON 18/612007 AND THE SALE WAS DONE ON 13/ 3/2009, 20/3/2009 AND 25/3/2009. 5.10. AS PER THE DE-MAT STATEMENTS, THE SHARES WERE CREDITED TO THE APPELLANTS ACCOUNT ONLY ON 6/3/2009, 12/3/2009 AND 19/3/2009 AND WAS DEBITED ON THE SAME DAY. SMT. LEE LA SURANA, IN HER SWORN STATEMENT HAS CLEARLY STATED THAT BOGUS C ONTRACT NOTES WERE PREPARED BACK DATED AFTER RECEIVING THE CASH. THE MODUS OPERA NDI IS DESCRIBED IN THE SWORN STATEMENT. 5.11. AO OBTAINED THE DETAILS FROM THE STOCK EXCHAN GE AND CROSS VERIFIED THE ACCOUNTS OF THE DEPOSITORY PARTICIPANT OF THE APPELLANT AND FOUND THAT THE PURCHASES WERE MADE ONLY IN MARC H 2009. IT WAS ALSO FOUND THAT THE SHARES WERE TRANSFERRED FRO M THE POOL ITA NO.1827 /2019 :- 7 -: ACCOUNT OF SMT. LEELA SURANA ON THREE DAYS IN MARCH 2009 AND THE SAME WERE TRANSFERRED BACK TO THE POOL ACCOUNT ON T HE SAME DATE. IT WAS CLEAR FROM THE DETAILS GATHERED FROM THE STO CK EXCHANGE THAT THERE NO PURCHASE MADE BY APPELLANT OR STOCK BROKER OR ANYONE ON BEHALF OF APPELLANT IN JUNE 2007 RELATED TO THE SHA RES SHOWN BY THE APPELLANT AS PURCHASED DURING JUNE 2007. 5.12. CROSS EXAMINATION PROCEEDINGS WERE CONDUCTED BY THE AO CORRECTLY IN THE PRESENCE OF APPELLANTS AR, SMT.LE ELA SURANA AND HER AUTHORIZED REPRESENTATIVE. SMT.LEELA SURANA HAS CONFIRMED THAT SHE HAS FACILITATED THE BOGUS CONTRACT NOTES. SHE HAS NOT RETRACTED FROM THE STATEMENT GIVEN EARLIER TO THE D DIT. AS HER COMPUTERS AND OTHER DOCUMENTS ARE WITH THE IT DEPAR TMENT, SHE WAS UNABLE TO RECALL THE EXACT DETAILS. HOWEVER, IN HER COMMUNICATIONS TO THE ADIT UNIT III, SHE HAS CLEARL Y ADMITTED DETAILS OF BOGUS CONTRACT NOTES DONE BY HER FOR VAR IOUS ASSESSEES INCLUDING THE APPELLANT. 5.13. ARS ARGUMENT THAT ALONG WITH SMT.LEELA SURANA , MR DINESH KUMAR SURANA WAS ALSO ALLOWED TO BE PRESENT AND THU S THE CROSS EXAMINATION PROCEEDINGS WERE A MOCKERY IS NOT COR RECT AND CANNOT BE ACCEPTED. IT IS CLEARLY MENTIONED IN THE PROCEEDINGS THAT SHRI DINESH KUMAR SURANA WAS ALSO ALLOWED TO BE PRE SENT ALONG WITH SMT.LEELA SURANA. SIMILARLY, AO ALLOWED THE AR OF THE APPELLANT TO CONDUCT THE PROCEEDINGS ON BEHALF OF T HE APPELLANT. SMT.LEELA SURANA WAS PERSONALLY PRESENT THROUGHOUT THE PROCEEDINGS AND SHE HAS SIGNED THE STATEMENT RELATE D TO THE PROCEEDINGS. THERE IS NO INFIRMITY IN THE PROCEEDIN GS AND THE CASE LAWS RELIED ON BY THE AR OF THE APPELLANT ARE IRREL EVANT TO THE FACTS OF THE CASE. 5.14. AS HELD BY THE ITAT IN (2017) 83 TAXMANN.COM.107(MADRAS)2017, IN A CASE( NITESH CHAJ JED VS ITO, CHENNAI) WHERE FACTS ARE SAME, REOPENING PROCEEDING S IN THIS CASE ARE VALID. IN THE CASE OF BACK DATED CONTRACT NOTE AND PURCHAS E OF SHARES BY CASH, ON SIMILAR FACTS OF THAT OF APPELLANT, ITAT M UMBAI IN THE CASE OF ITO VS SHAMIM M.BHARWONI 69 TAXMANN.COM 65(2016) HELD THAT AO RIGHTLY REJECTED ASSESSEES CLAIM AND ADDED AMOU NT IN QUESTION TO HIS TAXABLE INCOME UNDER SECTION 68. CASES OF SUCH ACCOMMODATION ENTRIES HAVE BEEN EXAMI NED BY HIGH COURT OF ALLAHABAD WHILE CONFIRMING PENALTY U/S 271 (1)(C) IN THE CASE OF RAJNISH JAM VS CIT, 88 TAXMANN.COM 220(2017 ). ITA NO.1827 /2019 :- 8 -: 5.15. AS IT IS CLEAR FROM THE FACTS OF THE CASE THA T APPELLANT HAS ENTERED INTO SHAM TRANSACTIONS TO CLAIM BOGUS LTCG BY MAKING INVESTMENTS IN CASH THAT ARE FROM UNEXPLAINED SOURC ES, ADDITION MADE IN THE ASSESSMENT ORDER IS CONFIRMED. 4. BEING AGGRIEVED BY THE ORDER OF THE CIT(A), THE AP PELLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. AT THE O UTSET, THERE WAS DELAY OF TWENTY SIX DAYS IN FILING THE PRESENT APPE AL BY THE ASSESSEE AND ASSESSEE FILED PETITION PRAYING FOR CONDONATI ON OF DELAY STATING THAT THE ORDER OF THE LD. CIT(A) WAS MISPLACED BY T HE ACCOUNTED AND CONSEQUENTLY DELAY HAD OCCURRED IN FILING THE APPE AL AND THEREFORE PRAYED FOR CONDONING THE DELAY. THE LD. DEPARTMENTA L REPRESENTATIVE DID NOT RAISE ANY SERIOUS OBJECTION FOR CONDONING T HE DELAY. IN THE CIRCUMSTANCES, WE CONDONE THE DELAY OF TWENTY SIX D AYS IN FILING THE APPEAL AND ADMIT THE APPEAL FOR ADJUDICATION. AT T HE TIME OF HEARING OF APPEAL, NONE APPEARED ON BEHALF OF THE ASSESSEE DESPITE DUE SERVICE OF NOTICE. 5. ON THE OTHER HAND, THE LD. SR. DEPARTMENTAL REPRESE NTATIVE PLACED RELIANCE ON THE ORDERS OF LOWER AUTHORITIES. 6. WE HEARD THE LD. SR. DEPARTMENTAL REPRESENTATIVE AN D PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN VOLVED IN THE PRESENT APPEAL RELATES TO DISALLOWANCE OF LONG TER M CAPITAL GAINS ON THE ALLEGED BOGUS TRANSACTION. THE ASSESSING OFFICE R HAD BROUGHT ON ITA NO.1827 /2019 :- 9 -: RECORD, CERTAIN INCRIMINATING INFORMATION CLEARLY STIPULATES THAT TRANSACTIONS ENTERED BY THE ASSESSEE WITH MS. LEEN A SURANA ARE BOGUS. IT IS FOR THE ASSESSEE TO EXPLAIN THE TRUE N ATURE OF THE TRANSACTION, AS SHE WAS WITHIN EXCLUSIVE KNOWLEDGE OF THE FACTS WHICH THE ASSESSEE HAD FAILED TO DO SO EVEN BEFORE THE L D. CIT(A). THE FINDINGS OF THE LD. CIT(A) REMAINS UNCONVERTED. TH US, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDERS OF THE LOWE R AUTHORITIES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE ST ANDS DISMISSED. ORDER PRONOUNCED ON 5TH DAY OF DECEMBER, 2019, AT CHENNAI. SD/- SD/- ( . ) (DUVVURU RL REDDY) ! '# /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCO UNTANT MEMBER 1 #- / CHENNAI 2# / DATED: 5TH DECEMBER, 2019. KV 3 ) +.4 5' !6 5&. / COPY TO: 1 . !' '( / APPELLANT 3. 7. (!' ) / CIT(A) 5. 5 :; +.#< / DR 2. +,'( / RESPONDENT 4. 7. / CIT 6. ;$ =- / GF