The ACIT-1(2), Bhopal V. Shri Ramesh Chandra Agarwal, Bhopal

ITA 394/IND/2013

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2330 (ITAT-INDORE)
• Duration Of Justice: 4 year(s) 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 07-08-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 03-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LALCHAND
• Assessee Lawyers: DESH
• Keywords: Share purchase agreement; Cost of acquisition; Sham transactions

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.394/IND/2013 ASSESSMENT YEAR: 2008-09 ACIT, 1 ( 2 ) BHOPAL, / VS. M/S. SHRI RAMESH CHANDR AGARWAL, E-1/79, ARERA COLONY, BHOPAL ( REVENUE ) ( RESPONDENT ) P.A. NO. ACYPA5011F REVENUE BY SHRI LAL CHAND, CIT - DR RESPONDENT BY SHRI DESHPANDE , C A DATE OF HEARING: 29.01.2018 DATE OF PRONOUNCEMENT: 31 .01.2018 / O R D E R PER KUL BHARAT, J.M: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS)-I, BHOPAL, (IN SHORT CIT(A)), DATED 26.03.2013 PERTAINING TO THE A.Y. 2008-09. TH E REVENUE HAS RAISED FOLLOWING GROUNDS OF APPEAL: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.5,80,51,000/- MADE BY THE AO ON ACCOUNT OF SHARE SALE CONSIDERATION TREATED AS INCOME FROM OTHER SOURCES. RAMESH CHAND AGARWAL 2 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CAS E AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F RS.6,93,51,178/- MADE BY THE AO ON ACCOUNT OF LONG TERM CAPITAL GAIN TREATED AS INCOME FROM OTHER SOURCES. 2 . BRIEFLY STATED FACTS ARE THAT THE CASE OF THE ASS ESSEE WAS SELECTED FOR SCRUTINY ASSESSMENT THROUGH CASS WHILE FRAMING THE ASSESSMENT. THE ASSESSING OFFICER MADE TWO ADDITION S OF RS.5,80,51,000/- AND RS.6,93,51,178/- ON ACCOUNT OF TREATING THE SALE CONSIDERATION AS INCOME FROM OTHER SOURCES AND THE LONG TERM CAPITAL GAIN TREATED AS INCOME FROM OTHER SOURCES. 3. AGGRIEVED BY THIS THE ASSESSEE PREFERRED AN APPE AL BEFORE THE LD. CIT(A) WHO AFTER CONSIDERING THE SUBMISSIONS DELETE D THE ADDITIONS. NOW THE REVENUE IS IN APPEAL BEFORE THIS TRIBUNAL C HALLENGING THE ORDER OF THE LD. CIT(A). 4. GROUND NO.1 IS AGAINST DELETING THE ADDITION OF RS.5,80,51,000/- MADE BY THE AO ON ACCOUNT OF SHARE SALE CONSIDERATI ON TREATED AS INCOME FROM OTHER SOURCES. LD. CIT-DR, SHRI LAL CHAND VEHEMENTLY ARGUED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITIONS. HE SUBMITTED THAT AO HAS OBSERVED IN THE ASSESSMENT ORDER THAT NO SHA RE CERTIFICATE IN THE NAME OF THE ASSESSEE IN THESE COMPANIES WERE PRODUCED. NO SHARE CERTIFICATE FORMS TOWARDS SALE OF SHARES IN B HARSKAR EXXOILS LTD. WERE PRODUCED. NO SHARE PURCHASE AGREEMENT BET WEEN THE ASSESSEE AND BUYER WERE PRODUCED. THE ASSESSEE ALSO OBSERVED THAT ON PERUSAL OF AUDITED BALANCE SHEET OF THE COMPANY SUBMITTED DURING ASSESSMENT PROCEEDINGS OF BHASKAR INFRASTRUC TURE LTD. FOR F.Y. ENDED ON 31.03.2007, THERE WAS A BROUGHT FORWA RD LOSS OF RAMESH CHAND AGARWAL 3 RS.2,88,153/- WHEREAS THE ASSESSEE HAS SOLD SHARE AT RS.710/- PER SHARE. IN CASE OF BHASKAR EXXOILS LTD. THE ASSESSEE COULD NOT SUBMIT TO WHOM SHARES WERE SOLD AND FROM WHOM SALE CONSIDERATION WAS RECEIVED. LD. CIT-DR SUBMITTED TH AT THESE WERE THE SUFFICIENT REASON FOR TREATING TRANSACTIONS AS BOGUS AND TAXING THE INCOME FROM OTHER SOURCES. ON THE CONTRARY LD. AUTHORIZED REPRESENTATIVE (AR), SHRI S.S. DESHPANDE SUPPORTED THE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT THE ASSESSEE HAS PRODUCED THE RELEVANT DOCUMEN TS AND WHICH WAS FORWARDED THE AO FOR EXAMINATION AND VERIFICATI ON. 5. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED MATE RIAL ON RECORD. WE FIND THAT AFTER CONSIDERING THE SUBMISSIONS THE LD. CIT(A) HAS GIVEN THE FINDINGS ON FACT AS UNDER: 4.6 I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE APPELLANT, REMAND REPORT AND REJOINDER OF THE APPELLANT. REGAR DING THE ISSUE OF SALE OF SHARE OF DIVYA MOTI HOTEL AND RESO RTS PVT. LTD. IT IS NOTICED THAT THE APPELLANT HAD SHOWN SALE OF 700 00 SHARES OF M/S. DIVY MOTI HOTEL & RESORTS PVT. LTD. TO M/S. RE EVA BUILDCON PVT. LTD. FOR A CONSIDERATION OF RS.4,97,00,000/- @ RS.710/- PER SHARE. THE APPELLANT HAS FURNISHED DETAILS IN THE F ORM OF BALANCE SHEET OF M/S. DIVYA MOTI HOTEL & RESORTS PV T. LTD., JIPUR. COPY OF FORM NO.20B FURNISHED BY M/S DIVYA M OTI HOTEL & RESORTS PVT. LTD. BEFORE THE REGISTRAR OF COMPANI ES INCLUDING ANNUAL RETURNS SHOWING THE DETAILS OF SHAREHOLDERS AS ON THE DATE OF ANNUAL GENERAL MEETING (AGM) AND ALSO THE B ALANCE SHEET AND OTHER DOCUEMNTS FURNISHED BY M/S. REEVA B UILDCON PVT. LTD. TO THE REGISTRAR OF COMPANIES. FROM THE D OCUMENTS, IT CAN BE CLEARLY SEEN THAT THE APPELLANT WAS SHOWN AS SHAREHOLDER OF M/S. DIVYA MOTI HOTEL & RESORTS PVTL LTD. HOLDING 70000 SHARES AS PER THE LIST OF SHAREHOLDERS AS ON AGM ON 29.09.2007. IT IS ALSO MENTIONED IN THE ANNUAL RETU RNS FURNISHED BEFORE THE REGISTRAR THAT THESE SHARES WE RE RAMESH CHAND AGARWAL 4 TRANSFERRED ON 04.01.2008 IN THE NAME OF M/S REEVA BUILDCON PVT. LTD. IT IS ALSO NOTICED THAT THE APPELLANT HAD RECEIVED THE SALE CONSIDERATION OF RS.4,97,00,000/- BY CHEQUE NO .927605 DATED 04.01.2008 DRAWN ON IDBI BANK BRANCH D-24, DU RLABH NIWAS, PRITHVIRAJ ROAD, C SCHEME, JAIPUR FROM M/S. REEVA BUILDCOM PVT. LTD. THE INVESTMENT MADE BY M/S REEVA BUILDCON PVT. LTD. HAD ALSO BEEN REFLECTED BY IT IN ITS BALA NCE SHEET AS ON 31.03.2008. ALL THESE FACTS AND DOCUMENTS SUBMITTED BY THE APPELLANT PROVED THE GENUINENESS OF TRANSACTION OF SALE. AS FAR AS SALE PRICE OF SHARE OF M/S. DIVYA MOTI HOTEL & RESORTS PVT. LTD. IS CONCERNED, IT MAY BE NOTICED THAT M/S. DIVY A MOTI HOTEL & RESORTS PVT. LTD. HAD ALLOTTED 150000 EQUITY SHAR ES ON 28.12.2007 AT PRICE OF RS.700/- PER SHARES WHICH I NCLUDED RS.690/- AS SHARE PREMIUM ON EACH SHARE OF RS.10/-, WHICH INDICATE THE PREVAILING MARKET RATE OF THE SHARE. T HE APPELLANT HAS SOLD THESE SHARE ON 04.01.2008 AT A RATE OF RS. 710/- PER SHARE. IN THE ABSENCE OF ANY MATERIAL ON RECORDS TO THE CONTRARY, IT CANNOT BE SAID THAT THE SHARES WERE NOT WORTH RS .710/- PER SHARE ON THE DATE OF SALE. THE APPELLANT HAD FURNIS HED DOCUMENTS TO PROVE THE GENUINENESS OF THE TRANSACTI ON. IT MAY BE NOTED THAT THE APPELLANT HAS SHOWN A LONG TERM C APITAL GAINS AS CHARGEABLE TO TAX AND NOT EXEMPT. SIMILARLY, IN REGARD TO SALE OF SHARE OF THE OTHER COMPANY, M/S BHASKAR EXXOILS PVT. LTD. TO M/S. VINDHYA SOLVENT PVT. LTD., THE APPELLANT HAS F URNISHED DOCUMENTS SHOWING THE SALE OF SHARES SUCH AS THE AP PELLANT HAS FURNISHED THE COPY OF SHARE TRANSFER DEED OF SH ARES OF BHASKAR EXXOILS PVT. LTD. SHOWING THE NAME OF TRANS FER AND TRANSFEREE ALONG WITH THEIR SIGNATURES AND ALSO A C OPY OF BALANCE SHEET AS ON 31.03.2008 OF M/S. VINDHYA SOLV ENT PVT. LTD. THE TRANSFEREE COMPANY SHOWING THE INVESTMENT IN THE SHARES OF BHASKAR EXXOILS PVT. LTD. THE AO ID NOT P OINT OUT ANY DEFECTS OR DEFICIENCY OR INCONSISTENCY IN THE DOCUM ENTS FURNISHED BY THE APPELLANT AND ALSO HAD NOT BROUGHT ANY MATERIAL ON RECORD WHICH CAN SUGGEST THAT THE TRANS ACTIONS OF SALE OF SHARES SHOWN BY THE APPELLANT WERE NOT GENU INE. THE SUSPICION OR DOUBT HOWSOEVER STRONG IT MAY BE, CANN OT TAKE THE SHAPE OF EVIDENCE. THEREFORE, CONSIDERING THE TOTAL ITY OF FACTS AND CIRCUMSTANCES OF THE CASE, THE AO WAS NOT JUSTI FIED, IN THE ABSENCE OF ANY MATERIAL IN HIS POSSESSION, TO HOLD THAT THE RAMESH CHAND AGARWAL 5 TRANSACTIONS OF SALE OF SHARES SHOWN BY THE APPELLA NT WERE SHAM TRANSACTIONS. THEREFORE, THE ADDITION OF RS.5, 80,51,000/- MADE BY THE AO CANNOT BE SUSTAINED AND IS, THUS, DE LETED. THE AO IS DIRECTED TO ASSESS THE PROFITS EARNED BY THE APPELLANT ON SALE OF THESE SHARES AS INCOME UNDER THE HEAD CAPIT AL GAINS AS LONG TERM CAPITAL GAINS. THUS, THIS GROUND OF APPEA L IS ALLOWED. THIS FINDING ON FACT IS NOT CONTROVERTED BY THE REV ENUE BY PLACING ANY CONTRARY MATERIAL ON RECORD. WE, THEREFORE, DO NOT SEE ANY REASON TO INTERFERE IN THE FINDING OF THE LD. CIT(A ), SAME IS HEREBY AFFIRMED. 6. GROUND NO.2 IS AGAINST DELETING THE ADDITION OF RS.6,93,51,178/- MADE BY THE AO ON ACCOUNT OF LONG TERM CAPITAL GAIN TREATED AS INCOME FROM OTHER SOURCES. LD. CIT-DR SUPPORTED THE ORDER OF THE AO AND SUBMI TTED THAT LD. CIT(A) WAS NOT JUSTIFIED IN MAKING THE ADDITION . ON THE CONTRARY LD. COUNSEL FOR THE ASSESSEE SUPPORTED THE ORDER OF THE LD. CIT(A) AND SUBMITTED THAT THE AO FAILED TO APPRECIATE THE FACT IN RIGHT PROSPECTIVE. 7. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED MATERIAL ON RECORD. THE AO HAS MADE ADDITION BY OBSERVING AS UN DER: FROM THE LONG CAPITAL GAIN OF RS.4,93,47,305/-, L ONG TERM CAPITAL LOSS OF RS.4,86,44,204/- OF A.Y. 2007-08 HA S BEEN DEDUCTED. THE ENTIRE TRANSACTIONS OF LONG TERM CAPI TAL GAIN ON SALE OF SHARES OF THESE COMPANIES ARE BOGUS TRANSAC TIONS AND TOTAL SHARE CONSIDERATION IS TREATED AS INCOME FROM OTHER SOURCES FOR THE FOLLOWING REASONS: 1) NO SHARE CERTIFICATE IN THE NAME OF THE ASSESSEE IN THESE COMPANIES WERE PRODUCED. 2) NO SHARE CERTIFICATE FORMS TOWARDS SALE OF SHARE S IN BHARSKAR EXXOILS LTD. WERE PRODUCED. RAMESH CHAND AGARWAL 6 3)NO SHARE PURCHASE AGREEMENT BETWEEN THE ASSESSEE AND BUYER ARE PRODUCED, AS THESE SHARES ARE NOT SOLD TO STOCK EXCHANGE OR SHARE BROKERS. DUE TO THIS THE ASSESSEE HAS NOT BEEN ABLE TO PROVE THE PURCHASE OF SHARES IN HIS NA ME IN THESE COMPANIES AND THE PURPOSE OF INVESTMENT IN EQUITY S HARE OF THESE UNLISTED/UNQUOTED COMPANIES IS NOT MADE CLEAR . 4) THE ASSESSEE WAS SPECIFICALLY ASKED TO JUSTIFY T HE SALE OF EQUITY SHARES OF M/S DIVYA MOTI HOTEL AND RESORTS P VT. LTD. AT PREMIUM. ON PERUSAL OF AUDITED BALANCE SHEET OF THE COMPANY SUBMITTED DURING ASSESSMENT PROCEEDINGS OF BHASKAR INFRASTRUCTURE LTD. FOR F.Y. ENDED ON 31.03.2007, T HERE WAS A BROUGHT FORWARD LOSS OF RS.2,88,153/- WHEREAS THE A SSESSEE HAS SOLD SHARE AT RS.710/- PER SHARE. THEREBY EARNI NG IS RS.0.52/- PER SHARE AS ON 31.03.2007. 5) IN CASE OF BHASKAR EXXOILS LTD. THE ASSESSEE COU LD NOT SUBMIT TO WHOM SHARES WERE SOLD AND FROM WHOM SALE CONSIDE RATION WAS RECEIVED. IN VIEW OF THE ABOVE OBSERVATIONS AND FINDING ENTIR E SALE CONSIDERATION OF RS.5,80,51,000/- DECLARED ON ACCOU NT OF SALE OF EQUITY SHARE OF ABOVE COMPANIES BY THE ASSESSEE AND OFFERED AS LONG TERM CAPITAL GAINS REMAINS UNEXPLAINED AND THEREFORE THE SAME IS TREATED AS INCOME FROM OTHER SOURCES. FURTHER THE ASSESSEE HAS ALSO CLAIMED LONG TERM CAP ITAL GAIN OF RS.6,93,51,178/- AS EXEMPT U/S 10(38) OF IT ACT, 19 61. THE DETAILS OF THE SAME WERE SUBMITTED ALONG WITH THE W RITTEN SUBMISSION DATED 25.8.2010. THE ASSESSEE HAS NOT SU BMITTED ANY BROKERS NOTE TO JUSTIFY THE CLAIM OF EXEMPTION U/S 10938). THE DETAILS WHETHER THE SHARES WERE SOLD THROUGH ST OCK EXCHANGE AND SECURITY TRANSACTION CHARGE WERE PAID OR NOT HAVE NOT BEEN SUBMITTED. IT IS ALSO SEEN THAT 1235269 SH ARES OF MERCATOR LINES SOLD AT RS.6,44,69,753/-. THE SHARES HAVE NO PURCHASE COST AS THE ENTIRE AMOUNT OF RS.6,44,69,75 3/- SHOWN AS EXEMPT FROM LONG TERM CAPITAL GAIN U/S 10(38). A S PER THE DETAILS OF LONG TERM GAIN, PROFIT/LOSS IN CASE OF A SSESSEE RELATING TO THE SHARES OF MERCATOR LINES IT IS STATED THAT T HE ASSESSEE SOLD 1652318 SHARES DURING F.Y.2007-08 WHEREAS THE TOTAL NO. OF SHARE IN THE NAME OF THE ASSESSEE AS PER THE DEMAT ACCOUNT WITH IDBI BANK LTD. RELATING TO MERCATOR LINES WAS 1259329 SHARE ONLY. THEREFORE WHEN THE ASSESSEE IS HOLDING 1259329 RAMESH CHAND AGARWAL 7 SHARES IN HIS DEMAT ACCOUNT, HOW CAN HE SELL 165231 8 SHARES AND CAN EARN LONG TERM CAPITAL GAIN OF RS.6,85,86,0 66/- WHICH HAS BEEN CLAIMED AS EXEMPT U/S 10(38) OF THE IT ACT . HOWEVER NO EVIDENCE/PROOF OR EXPLANATION HAS BEEN FURNISHED IN THIS RESPECT. THEREFORE IN VIEW OF THE ABOVE ENTIRE LONG TERM CAPITAL GAIN OF RS.6,93,51,178/- CLAIMED AS EXEMPT IS DISAL LOWED AND CHARGE TO TAX AS INCOME FROM OTHER SOURCES. 8. HOWEVER, THE LD. CIT(A) AFTER CONSIDERING THE SU BMISSIONS AND EXAMINING THE ASSESSMENT ORDER HAS GIVEN FINDING ON FACT AS UNDER: 5.5 I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE APPELLANT AND FACTS OF THE CASE. THE APPELLANT HAD SHOWN LONG TERM CAPITAL GAINS OF RS.6,93,51,178/- ON THE SALE OF 16 52318 SHARES OF M/S MERCATOR LINES LTD. 28671 SHARES OF M /S RELIANCE NATIONAL RESOURCES LTD. AND 23178 SHARES O F VISA STEEL LIMITED DURING F.Y. 2007-08 AND CLAIMED THE S AME AS EXEMPT U/S 10(38) OF THE IT ACT. THE APPELLANT HAD ALSO FURNISHED COPY OF HIS DEMAT ACCOUNTS AS WELL AS COP Y OF BROKERS NOTES FOR SALE OF SHARES ON THE NATIONAL S TOCK EXCHANGE OF INDIA LTD. AND BOMBAY STOCK EXCHANGE LTD. IT IS ALSO NOTICED THAT SECURITY TRANSACTION TAX (STT) WAS PAID BY THE APPELLANT ON THE TRANSACTIONS OF SALE OF THESE SHARES, AS IS MEN TIONED IN THE BROKERS NOTES. AS PER COMPUTATION OF LONG TERM CAP ITAL GAINS FURNISHED BY THE APPELLANT, IT IS NOTICED THAT THE APPELLANT HAD SHOWN SALE OF THESE SHARES AFTER HOLDING THE SAME F OR MORE THAN ONE YEAR. THUS, THE APPELLANT HAD EARNED LONG TERM CAPITAL GAINS ON THE TRANSFER OF SHARE ON THE RECOGNIZED ST OCK EXCHANGES AND PAID SECURITY TRANSACTION TAX ON THE SALE OF THESE SHARES. THEREFORE, THE APPELLANT HAD FULFILLE D THE CONDITIONS U/S 10(38) AND WAS ELIGIBLE FOR EXEMPTIO N U/S 10(38) ON THE LONG TERM CAPITAL GAINS EARNED ON SALE OF 16 52318 SHARES OF M/S. MERCATOR LINES LTD. 28671 SHARE OF M /S. RELIANCE NATURAL RESOURCES LTD. AND 23178 SHARES OF VISA STEEL LIMITED DURING THE PREVIOUS YEAR RELEVANT TO A.Y. 2 008-09 UNDER CONSIDERATION. ON PERUSAL OF DEMAT ACCOUNT MAINTAINED BY THE APPEL LANT WITH IDBI LTD. IT IS NOTICED THAT APPELLANT WAS ALLOTTED 1317850 RAMESH CHAND AGARWAL 8 BONUS SHARES OF M/S. MERCATOR LINES LTD. ON 08.03.2 006. SINCE, THE APPELLANT HAD SOLD THESE BONUS SHARES, THE COST OF ACQUISITION OF THESE BONUS SHARES HAD BEEN CORRECTL Y SHOWN TO RS.NIL, AS THERE WAS NO COST INCURRED BY THE APPELL ANT IN ACQUISITION OF BONUS SHARES. AS REGARDS OBSERVATION OF THE AO THAT WHEN THE APPELLANT WAS HOLDING 1259329 SHARES ONLY IN HIS DEMAT ACCOUNT, HOW CAN BE SELL 1652318 SHARES O F M/S MERCATOR LINES LTD., IT IS NOTICED THAT 450000 SHAR ES OF M/S MERCATOR LINES LTD. BELONGING TO THE APPELLANT WERE TRANSFERRED FROM APPELLANTS DEMAT ACCOUNT NO.11145756 WITH IDB I BANK LTD. TO APPELLANTS OWN ANOTHER LEDGER ACCOUNT CMP 90 FOR CLIENTS MARGIN BY THE BROKER. THE APPELLANT HAD ALS O FURNISHED A CERTIFICATE FROM M/S. KASSA FINEVEST LTD. AS WELL AS COPY OF HIS ACCOUNT OF DEMAT LEDGER CPM 90 OF RAMESH CHANDR A AGRAWAL, THE APPELLANT, WHEREIN 450000 SHARES OF M/ S. MERCATOR LINES LTD. WERE CREDITED AND THESE SHARES WERE SHOWN SOLD DURING F.Y. 2007-08. IT MAY BE NOTED THAT THE DEMAT ACCOUNT FO THE APPELLANT WITH IDBI BANK LTD. WAS SH OWING OPENING BALANCE OF 1259329 SHARES OF M/S MERCATOR L INES LTD. S ON 01.04.2007 AND ANOTHER 450000 SHARES OF M/S ME RCATOR LINES LTD. WERE THERE IN ANOTHER ACCOUNT OF THE APP ELLANT CLIENT LEDGER CMP 90 KEPT FOR CLIENT MARGIN BY KASSA FINEV EST PVT. LTD. THUS, THE APPELLANT WAS HAVING SUFFICIENT NUMBER OF SHARES FOR MAKING SALE OF 1652318 SHARES ON WHICH THE LONG TER M CAPITAL GAINS EARNED WAS CLAIMED AS EXEMPT U/S 10(38) OF TH E ACT. 9. THERE IS NO DISPUTE WITH REGARD TO THE FACT THAT THE AO MADE ADDITION ON THE BASIS THAT AS PER THE DETAILS OF LO NG TERM GAIN, PROFIT/LOSS IN CASE OF ASSESSEE RELATING TO THE SHA RES OF MERCATOR LINES IT IS STATED THAT THE ASSESSEE SOLD 1652318 S HARES DURING F.Y.2007-08 WHEREAS THE TOTAL NO. OF SHARE IN THE N AME OF THE ASSESSEE AS PER THE DEMAT ACCOUNT WITH IDBI BANK LT D. RELATING TO MERCATOR LINES WAS 1259329 SHARE ONLY. HOWEVER, THI S OBJECTION OF THE AO IS REBUTTED BY THE ASSESSEE BY FURNISHING TH E EVIDENCE THAT RAMESH CHAND AGARWAL 9 THE ASSESSEE WAS HAVING SUFFICIENT NUMBER OF SHARES FOR MAKING SALE OF 1652318 SHARES. NO CONTRARY MATERIAL IS PLA CED BEFORE THIS TRIBUNAL BY THE REVENUE, THEREFORE, WE DO NOT SEE A NY REASON TO INTERFERE IN THE FINDING OF THE LD. CIT(A), SAME IS HEREBY UPHELD. THUS, THE GROUND OF REVENUE IS DISMISSED. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IN ITA NO.394/IND/2013 IS REJECTED. ORDER WAS PRONOUNCED IN THE OPEN COURT ON 31 .0 1.2018. SD/- (MANISH BORAD) SD/- (KUL BHARAT) CCOUNTANT MEMBER JUDICIALMEMBER INDORE; DATED : 31 / 01/2018 CTX? P.S/. . . COPY TO: ASSESSEE/AO/PR. CIT/ CIT (A)/ITAT (DR)/GUA RD FILE. BY ORDER PRIVATE SECRETARY/DDO, INDORE