Vinay Kumar Dhingra(HUF), New Delhi V. ITO, Ward-49(1), New Delhi

ITA 6388/DEL/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2331 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-06-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: F
• Assessment Year: 2014-2015
• Appeal Filed On: 17-10-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Income from undisclosed sources; Share purchase agreement; Additional evidence; Accommodation entries; Scheme of amalgamation; TDS; Capital Gains
• Section: 271(1)(c); 13; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI BENCH: F NEW DELHI BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI O.P. KANT, ACCOUNTANT MEMBER [THROUGH VIDEO CONFERENCING] ITA NO.6388/DEL./2017 ASSESSMENT YEAR: 2014-15 SH. VINAY KUMAR DHINGRA (HUF), J-15, FIRST FLOOR, KIRTI NAGAR, NEW DELHI VS. ITO, WARD-49(1), NEW DELHI PAN :AAFHV3779Q (APPELLANT) (RESPONDENT) ORDER PER O.P. KANT, AM: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST OR DER DATED 23/08/2017 PASSED BY THE LEARNED COMMISSIONER OF IN COME TAX(APPEALS)-17, NEW DELHI [IN SHORT THE LD. CIT(A )] FOR ASSESSMENT YEAR 2014-15 RAISING FOLLOWING GROUNDS: 1. THAT THE ID. CIT(A) HAS ERRED IN LAW AND ON FACT S WHILE UPHOLDING THE DECISION OF THE ID. AO OF MAKING ADDITIONS OF R S.41,00,925/- ON SALE OF SHARES OF CRESSANDA SOLUTIONS LTD. AS NO N- GENUINE LTCG WITHOUT APPRECIATING THE SUBMISSIONS OF THE AS SESSEE. AS SUCH, THE ADDITION OF RS.41,00,925/- MAY PLEASE BE DELETED. APPELLANT BY NONE RESPONDENT BY SH. FARHAT KHAN, SR.DR DATE OF HEARING 07.06.2021 DATE OF PRONOUNCEMENT 28.06.2021 2 ITA NO.6388/DEL/2017 2. THAT THE ID. CIT(A) HAS ERRED IN LAW WHILE NOT C ONSIDERING THAT THE ID. AO HAS MADE AN ADDITION OF RS.41,00,925/- UNDER SECTION 68 OF THE INCOME TAX ACT, 1961 WITHOUT PROPERLY APPREC IATING THE SUPPORTING DOCUMENTS PLACED ON RECORD INCLUDING ALL OTMENT LETTER, ACKNOWLEDGMENT OF BANK REGARDING REQUEST FOR DEMATE RIALIZATION, CONTRACT NOTE FOR SALE, LEDGER ACCOUNT OF ASSESSEE IN THE BOOKS OF BROKER, DEMAT ACCOUNT ETC. AS SUCH, THE ADDITION OF RS.41,00,925/- MAY PLEASE BE DELETED. 3. THAT THE ID. CIT(A) ERRED IN LAW AND FACTS OF TH E CASE WHILE NOT APPRECIATING THAT THE ADDITION MADE LD. AO IS MEREL Y ON THE BASIS OF CONJECTURE AND SURMISES WITHOUT BRINGING ON RECO RD ANY SPECIFIC COGENT MATERIAL AGAINST THE ASSESSEE. AS SUCH, THE ADDITION OF RS.41,00,925/- MAY PLEASE BE DELETED. 4. THAT THE LD. CIT(A) FAILED TO APPRECIATE THAT TH E LD. AO HAS ERRED IN LAW WHILE MAKING ADDITION TO THE INCOME OF ASSES SEE WITHOUT CONFRONTING THE ASSESSEE WITH THE ALLEGED STATEMENT S OR EVIDENCES WHEREIN NAME OF THE ASSESSEE HAS BEEN MENTIONED, ON THE BASIS OF WHICH ALLEGATION HAS BEEN MADE THAT LTCG ON SALE OF SHARES OF CRESSANDA SOLUTIONS LTD. OF RS.41,00,925/- IS NON-G ENUINE. AS SUCH, THE ADDITION OF RS.41,00,925/- MAY PLEASE BE DELETED. 5. THAT THE LD. CIT(A) HAS FAILED TO CONSIDER WHILE UPHOLDING THE ADDITION OF RS.2,10,046/- ON ACCOUNT OF BROKERAGE O R COMMISSION, BEING ESTIMATED @ 5% BY THE LD. AO MERELY ON THE BA SIS OF PRESUMPTION WITHOUT EVEN PROVIDING ANY OPPORTUNITY TO THE ASSESSEE TO PROVIDE EXPLANATION FOR THE SAME. AS SU CH, THE ADDITION OF RS.2,10,046/- MAY PLEASE BE DELETED. 6. THAT THE ID. CIT(A) HAS ERRED IN LAW AND ON FAC TS WHILE UPHOLDING THE DECISION OF THE ID. AO WITHOUT CONSIDERING THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE. AS SUCH THE ORDER PASSED BY THE LD. CIT(A) IS AGAINST THE PRINCIPLE OF NATURAL JUST ICE AND THEREFORE, THE ADDITION OF RS.43,10,971/- MAY PLEASE BE DELETE D. 7. THAT THE ASSESSEE CRAVE TO ADD, ALTER, DELETE & MODIFY ANY OF THE OF HEARING. 2. BRIEFLY STATED FACTS OF THE CASE ARE THAT FOR THE YEAR UNDER CONSIDERATION, THE ASSESSEE FILED RETURN OF INCOME ON 31/07/2014 DECLARING TOTAL INCOME OF 8,28,390/-. THE RETURN OF INCOME FILED BY THE ASSESSEE WAS SELECTED FOR SCRUTINY ASSESSMEN T AND STATUTORY NOTICES UNDER THE INCOME-TAX ACT, 1961 (I N SHORT THE 3 ITA NO.6388/DEL/2017 ACT) WERE ISSUED AND COMPLIED WITH. IN THE RETURN OF INCOME FILED, THE ASSESSEE HAS CLAIMED LONG-TERM CAPITAL GAIN (LT CG) ON SALE OF SHARES OF M/S SMART CHAMP IT & INFRA LTD (WHICH LATER MERGED WITH M/S CRESSANDA SOLUTIONS LTD.) AMOUNTING TO 41,00,925/- AS EXEMPT UNDER SECTION 10(38) OF THE ACT. HOWEVER, THE ASSESSING OFFICER, ON THE BASIS OF ENQUIRIES CARRIE D OUT BY THE INVESTIGATION WING OF INCOME TAX DEPARTMENT AT KOLK ATA, AND OTHER FACTS AND CIRCUMSTANCES OF THE CASE LIKE PURC HASE THROUGH OFF-LINE ROUTE, DEMATERIALIZATION OF THE SHARES JUS T BEFORE THE SALE, FINANCIALS OF THE SCRIP COMPANY NOT SUPPORTING SUCH HIGH-VALUE ETC., HELD THAT TRANSACTION WAS A PRE-ARRANGED DEVI CE FOR CONVERTING BLACK MONEY INTO TAX EXEMPTED INCOME. HE , ACCORDINGLY, IN ASSESSMENT ORDER DATED 29/12/2016, HELD THE RECEIPT BY WAY OF SALES AS UNEXPLAINED CREDIT IN TE RMS OF SECTION 68 OF THE ACT. THE CONCLUSION OF THE ASSESSING OFFI CER IN PARAGRAPH 5.9 OF THE ASSESSMENT ORDER IS REPRODUCED AS UNDER: 5.9 IN VIEW OF THE FACTS AND CIRCUMSTANCES DISCUSS ED SUPRA, IT IS CONCLUDED THAT THE TRANSACTIONS WERE SHAM AND AIMED ONLY TO BRING UNACCOUNTED MONEY IN THE SEMBLANCE OF EXEMPTED LONG TERM CAPITAL GAINS/ STCG AND PAPER WORK HAS BEEN GOT UP AND DONE MERELY TO GIVE A COLOUR OF AUTHENTICITY TO THE TRANSACTION AN D BY CREATING A FACADE OF LEGITIMATE TRANSACTIONS. IT IS PERTINENT TO STATE HERE THAT THE ASSESSEE PREFERRED NOT TO EXPLORE THE POSSIBILITIES BY MAKING ANY REQUEST FOR CROSS EXAMINATION OF THE PERSONS WHO HA D GIVEN STATEMENTS ON THE BASIS OF WHICH THE DIRECTORATE OF INVESTIGATION HAS UNEARTHED THE SCAM ON THE ISSUE OF OBTAINING LTCG. THE FACTS OF THE CASE AS BROUGHT-OUT ABOVE, IT IS SELF- EVIDENT THAT HERE IS A CASE WHERE APPARENT IS NOT REAL AND THEREFORE NOT SACROS ANCT. MOST IMPORTANTLY, IT DOESN'T ACCORD WITH THE TEST OF HUM AN PROBABILITIES. IN LIGHT OF THE TEST OF HUMAN PROBABILITIES AS LAID DO WN IN SUMATI DAYAL VS CIT , THE ONLY REASONABLE INFERENCE LIKELY LO BE DRAWN REASONABLY BY A MAJORITY IS THAT THE ASSESSEE'S TRANSACTION IN THE MANIPULATED SCRIPT OF M/S CROSSANDA SOLUTIONS LTD ARE NON-GENUI NE ONE. THEREFORE, IT IS BEING HOLD THAT THE ASSESSEE HAS U SED A PRE- ARRANGED DEVICE IN FORM OF BOOKING OF BOGUS LTCG OL AMOUNT KS. 4 ITA NO.6388/DEL/2017 41,00,925/- DURING THE RELEVANT YEAR TO BRING INTO BOOKS HIS UNACCOUNTED INCOME IN VIEW OF TIRE ELABORATE DISCUS SION MADE ABOVE, I HEREBY HOLD THE AMOUNT OF RS. 41,00,925/- INTRODUCED/CREDITED BY THE ASSESSEE OUT OF THESE PU RPORTED SHARE SALE RECEIPTS DURING TIRE FINANCIAL YEAR 2013-14 (R ELEVANT TO THE ASST. YEAR 2014-15) IN HIS CAPITAL ACCOUNT AS HIS INCOME BEING UNEXPLAINED CASH CREDIT U/ S 68 OF THE INCOME TAX A CT (TAXABLE AT THE RATE OF 30% AS PROVIDED U/S 115BBE OF THE ACT). I AM FURTHER SATISFIED THAT THE ASSESSEE HAS CONCEALED PARTICULA RS AS WELL AS FURNISHED INACCURATE PARTICULARS OF THE INCOME AND IT IS A FIT CASE FOR PENALTY PROCEEDINGS U/ 271(1)(C) OF THE INCOME TAX ACT, 1961 WHICH ARE BEING SEPARATELY INITIATED. 3. ON FURTHER APPEAL, THE LD. CIT(A) ALSO UPHELD THE ADDITIONS MADE BY THE ASSESSING OFFICER. AGGRIEVED, THE ASSES SEE FILED APPEAL BEFORE THE INCOME TAX APPELLATE TRIBUNAL (IN SHORT THE TRIBUNAL) RAISING THE GROUNDS AS REPRODUCED ABOVE. 4. WE MAY LIKE TO MENTION THAT THE ASSESSEE WAS NOTIFI ED FROM TIME TO TIME FOR HEARING OF THE CASE BUT NONE ATTEN DED ON BEHALF OF THE ASSESSEE BEFORE US, NEITHER ANY ADJOURNMENT WAS FILED. ON PERUSAL OF THE RECORD IT IS FOUND THAT NOTICE FOR T HE HEARING ON 07/06/2021, WHICH WAS SENT BY SPEED POST ON 06/04/2 021 AT THE ADDRESS PROVIDED IN FORM NO. 36, HAS RETURNED U NSERVED WITH THE COMMENT THAT PARTY LEFT. IN SUCH CIRCUMSTANCE S, WE WERE OF THE OPINION THAT NO PURPOSE WOULD BE SERVED IN ISSU ING FURTHER NOTICES AT THE SAME ADDRESS AND THAT WOULD BE A FUT ILE EXERCISE, THEREFORE, THE APPEAL WAS HEARD EX PARTE QUA THE ASSESSEE, AFTER HEARING ARGUMENTS OF LEARNED DEPARTMENTAL REPRESENT ATIVE. 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE RELIED UPO N THE ORDER OF THE LOWER AUTHORITIES AND SUBMITTED THAT T HE ASSESSEE HAS FAILED TO SUBSTANTIATE CLAIM OF LONG-TERM CAPIT AL GAIN BEFORE THE LOWER AUTHORITIES. HE SUBMITTED THAT LONG-TERM CAPITAL GAIN ON SALE OF SHARES OF CRESSAND SOLUTIONS LTD. HAS BEE N HELD TO BE A 5 ITA NO.6388/DEL/2017 BOGUS ACCOMMODATION ENTRIES IN MANY OTHER CASES BY THE TRIBUNAL. HE SUBMITTED THAT PURCHASE OF THE SHARES WAS MADE AT RS. 10 PER SHARE, HOWEVER, HAS BEEN SOLD WITHIN TWO YEARS AT THE RATE OF RS. 420 PER SHARE WITHOUT ANY CREDIBLE FINA NCIALS OF SAID COMPANY. ACCORDING TO HIM, IN VIEW OF PREPONDERANCE OF THE PROBABILITY, THE LD. CIT(A) IS JUSTIFIED IN SUSTAIN ING THE ADDITION. 6. WE HAVE HEARD SUBMISSION OF THE LEARNED DEPARTMENT AL REPRESENTATIVE AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE FIND THAT ASSESSEE WAS ALLOTTED 10,000 SHARES OF M/ S SMART CHAMP IT INFRA LTD DIRECTLY BY THE COMPANY IN OFF-L INE TRANSACTION BY WAY OF PAYMENT OF CHEQUE OF 1 LAKH ON 06/09/2011. SUBSEQUENTLY, THE COMPANY M/S SMART CHAMP IT INFRA LTD MERGED WITH M/S CRESSAND SOLUTIONS LTD. ON 24.01.20 13 AND THE ASSESSEE TRANSFERRED DEMATERIALIZED SHARES OF M/S C RESSANDA SOLUTIONS LTD. TO HIS DEMAT ACCOUNT ON 14/03/2013. THE SHARES WERE THEN SUBSEQUENTLY SOLD ON 26/04/2013 THROUGH B OMBAY STOCK EXCHANGE AT A CONSIDERATION OF 42, 00, 925/-. THE ASSESSING OFFICER HAS FOUND THAT INQUIRIES WERE CON DUCTED BY THE SECURITIES EXCHANGE BOARD OF INDIA (SEBI) AND INTER IM EX PARTE ORDER DATED 19/12/2014 WAS PASSED BY THE SEBI FOR R ESTRAINING 108 ENTITIES INCLUDING M/S CRESSANDA SOLUTIONS LTD. AND ITS PROMOTERS AND DIRECTORS FROM ACCESSING THE SECURITI ES MARKET. THE ASSESSING OFFICER HAS REPRODUCED CHART OF PRICE FLUCTUATION IN THE SCRIP OVER A PERIOD OF FOUR YEARS AND FOUND THA T PRICES WERE ARTIFICIALLY RIGGED BY THE BOGUS PAPER COMPANIES AN D AFTER PROVIDING ACCOMMODATION ENTRIES OF LONG-TERM CAPITA L GAIN, THE PRICES OF THE SHARES HAD FALLEN AT THEIR INITIAL PR ICES. THE ASSESSING OFFICER ALSO RECORDED STATEMENT OF THE AS SESSEE AND HE 6 ITA NO.6388/DEL/2017 DID NOT FIND SATISFACTORY EXPLANATION OF IDENTIFYIN G THE SCRIP FOR INVESTMENT. HE HAS ALSO REPRODUCED THE FINANCIAL OF M/S CRESSAND SOLUTIONS LTD., WHICH ACCORDING TO HIM ARE NOT SUPPORTING HUGE RISE IN SHARE PRICE. THE LD. CIT(A) HAS REPRODUCED SUMMARY OF THE ARGUMENT OF THE ASSESSEE AS UNDER: 7.2 THE MAIN ARGUMENT OF THE ASSESSEE AGAINST THE ORDER OF THE AO IS THAT: THE ASSESSEE FULFILLS ALL CONDITIONS SPECIFIED U/ S. 10(38) THOUGH THE PURCHASE OF SECURITIES ARE OFF MARKET, THE SALE OF SHARES WAS MADE ONLINE ON WHICH STT HAS BEEN DULY P AID. THE SHARES WERE HELD FOR APPROXIMATELY 18 TO 20 M ONTHS COPY OF D-MAT STATEMENT, COPY OF CONTRACT NOTES E VIDENCING PAYMENT OF STT ON SALE OF SHARES HAVE BEEN PROVIDED . THE ASSESSEE HAS PROVED THE IDENTITY OF THE PARTY , THE GENUINENESS OF THE TRANSACTION AND THE CREDIT WORTH INESS AND THEREFORE, SECTION 68 IS NOT APPLICABLE. THE APPELLANT HAS DULY DISCHARGED HIS ONUS OF PRO VING THAT THE TRANSACTION OF PURCHASE AND SALE OF SHARES WAS GENU INE. THE APPELLANT HAS CITEC VARIOUS JUDGEMENTS STATIN G THEREIN THAT SECTION 68 WAS NOT APPLICABLE WHERE THE ASSESSEE HA S PLACED SUBSTANTIAL DOCUMENTARY EVIDENCE TO SUBSTANTIATE TH E GENUIN ?NESS OF THE TRANSACTION. ADDITION CANNOT BE MAAE ON THE BASIS OF MERE SUSP ICION AND DOUBT. THE SHARE PRICE OF SHARES ARE DETERMINED BY SUPPL Y AND DEMAND AND NOT BY CREDENTIALS IN TERMS OF FINANCE O R FINANCIAL CAPABILITY. 6.1 AFTER GOING THROUGH THE SUBMISSION OF THE ASSESSEE , THE LD. CIT(A) UPHELD THE TRANSACTION AS BOGUS OBSERVING AS UNDER: 7.3.1 IN THE BACK GROUND OF THE ABOVE GENERAL MO DUS OPERANDI AND THE METHOD IN WHICH THESE TYPES OF TRANSACTIONS ARE STRUCTURED, THE FOLLOWING FACTS HAVE BEEN NOTICED TO EMERGE IN THE CASE OF THE ASSESSEE WHICH ARE DISCUSSED IN DETAIL AS UNDER: (A) PURCHASE OF SHARES IS AN OFF MARKET TRANACTION: 7 ITA NO.6388/DEL/2017 FROM THE MODUS OPERANDI ADOPTED BY THE ASSESSEE, IT IS SEEN THAT THE PURCHASE TRANSACTION HAS BEEN DONE OFF MARKET I N PHYSICAL FORM. IT HAS BEEN DONE BY PREFERENTIAL ALLOTMENT OF SHARE S. IT IS A POSSIBILITY THAT THE TRANSACTIONS MAY BE OF THE BAD SHARES AS DISCUSSED IN PARA-7.3.2. THIS HAS BEEN CARRIED OUT IN A PLANNED MANNER TO CAPITALIZE THE BLACK MONEY BY TAKING EXEM PTION BY CLAIMING THE SAME AS LONG TERM CAPITAL GAIN. (B) NOT IN CONFIRMITY WITH SEBI GUIDELINES: AS EVIDENT FROM THE ABOVE, ASSESSEE HAS PURCHASED T HE SHARE M/S. CRESSENDA SOLUTIONS LTD. IN PHYSICAL FORM AND THERE AFTER, THE SAME HAVE BEEN CONVERTED INTO ELECTRONIC MODE. THE CONVE RSION HAS BEEN DONE JUST A FEW DAYS PRIOR TO THE SALE. IN SUCH CAS E OFF MARKET TRANSACTIONS, AS PER SEBI GUIDELINES, A BROKER CANN OT ISSUE A BROKERAGE NOTE CONTAINING TIME STAMP OF STOCK EXCHA NGE TRADED TIME EVEN THOUGH THE TRANSACTIONS ARE NOT ROUTED THROUGH STOCK EXCHANGE AND SUCH TRANSACTIONS ARE OFF MARKET TRANSACTIONS. SEBI HAD VIDE CIRCULAR NO. SMDRP/POLICY/CIT-21/99, DATED 14TH SEP TEMBER'1999 BANNED ALL NEGOTIATED DEALS INCLUDING CROSS DEALS A ND ALL SUCH DEALS ARE REQUIRED TO BE EXECUTED ONLY ON THE SCREENS OF EXCHANGES IN THE PRICE AND ORDER MATCHING MECHANISM OF THE EXCHANGE JUST LIKE ANY OTHER NORMAL TRADE. THUS FROM THE ABOVE, IT CAN BE SEEN THAT SUCH TRANSACTIONS ARE ILLEGAL, AND ARE NOT IN CONFORMITY WITH REGULATORY GUIDELINES. C) ASSESSEE NOT A REGULAR INVESTOR IN SHARES: THE ASSESSEE IS NOT A REGULAR INVESTOR IN SHARES. H ENCE, IT IS QUITE SURPRISING AS TO HOW HE EARNED A PHENOMENAL RETURN OF 42 TIMES WITHIN A SHORT SPAN OF PERIOD WHICH IS EXTREMELY UN USUAL. THE PAST RECORDS OF THE ASSESSEE FOR THE PRECEDING YEARS SHO W THAT THE ASSESSEE HAS NEVER TRANSACTED IN THE STOCK MARKET. THIS BEING THE CASE, THE ASSESSEE HAS ENTERED INTO A SHAM TRANSACT ION WITH THE FULL KNOWLEDGE OF IT, SO AS TO CONVERT UNACCOUNTED MONEY INTO ACCOUNTED MONEY IN THE GUISE OF CAPITAL GAINS. D) NATURE OF TRANSACTION: THE NATURE OF TRANSACTION ITSELF LOOKS SUSPICIOUS F ROM THE MANNER IT HAS BEEN CONDUCTED I.E. THE ABNORMAL APPRECIATION I N THE VALUE OF SHARES, THE MODE OF PAYMENT FOR PURCHASE OF SHARES NOT DOING THE TRANSACTION THROUGH THE NORMAL SHARE DEALING PROCED URES. THE ASSESSEE HAS SHOWN TO HAVE RECEIVED SALE PROCEEDS T HROUGH CHEQUE WHEREAS PURCHASES WERE CONSCIOUSLY MADE IN CASH IN THE AFORESAID MANNER TO FACILITATE MANIPULATION OF THE PURCHASE F OR ASSESSEE'S BENEFIT. 8 ITA NO.6388/DEL/2017 E) PENNY SHARE: THE SHARES IN WHICH THE ASSESSEE HAS CLAIMED TO HAV E MADE A DEAL, ARE IDENTIFIED AS PENNY SHARES BY THE INVESTIGATION WING OF THE DEPARTMENT BECAUSE RATES OF THESE SHARES ARE NOT BA SED ON BUSINESS RESULTS OF THE COMPANIES BUT SAME ARE FLUC TUATED BY INSIDER'S TRADING FROM ZERO VALUE (NEGLIGIBLE PRICE ) TO VERY HIGH PRICE AND VICE VERSA WITHOUT ANY REASON OR BASIS TO ACCOM MODATE OR GENERATE BOGUS CAPITAL GAIN OR LOSS. 7.3.2 MOREOVER, AS PER THE ASSESSMENT ORDER THERE W AS ALSO A SPECIFIC INFORMATION THAT ASSESSEE HAS INDULGED IN NON- GENUINE & BOGUS CAPITAL GAIN OBTAINED FROM THE TRANSACTIONS O F PURCHASE AND SALE OF SHARES OF M/S CRESSANDA SOLUTIONS LTD., A M UMBAI BASED COMPANY. AS PER THE NET (HTTP://WWW.BSEINDIA.COM/MARKETS/MARKETLNFO/DISPLMO TICESNCIRC ULARS.ASPX?NOTICEID=%7BLEB568 6C-949E-40FD- B25803867A8015E0%7D &NOTICENO=201303128&DT=03/12/2013&I COUNT=8 & TOTCOUNT =8 &FLAG=0) THERE IS A NEWS ARTI CLE IN RESPECT OF THE COMPANY WHICH IS REPRODUCED AS UNDER: TRADING MEMBERS OF THE EXCHAR GE ARE HEREBY INFORME D THAT THE UNDER MENTIONED SECURITIES OF CRESSANDA SOLUTIONS L IMITED (SCRIP CODE 512379) ARE LISTED ON THE EXCHANGE WITH EFFECT FROM THURSDAY, MARCH 14, 2013. MEMBERS ARE REQUESTED TO NOTE THAT, THE ABOVE SECUR ITY WILL BE A PART OF PRE-OPEN SESSION FOR IPO AND OTHER CATEGORY OF SCRIPS AS PER SEBI CIRCULAR NO. CIR/MRD/DP/01/2012 & CIR/MRD/DP/02/2012 DATED JANUARY 20, 2012. INITIALLY THE SECURITIES SHALL BE AVAILABLE FOR TRA DING IN TRADE FOR TRADE SEGMENT AND SUBSEQUENTLY BE SHIFTED OUT O F TRADE FOR TRADE, AS PER SEBI CIRCULAR NO. SEBI/CIR/ISO/1/2 010 DATED SEPTEMBER 2, 2010 NAME OF THE COMPANY : CRESSANDA SOLUTIONS LIMITED REGISTERED OFFICE : 307, MAKER BHAVAN NO. ILL 21, NEW MARINE LINES 3RD FLOOR, MUMBAI - 400 020. SECURITIES ) EQUITY SHARES ISSUED ON REDUCTION ) EQUITY SHARES ISSUED ISSUED ON AMALGAMATION : 3,03,57,750 EQUITY SHARES@ RS.10/- EACH 4,50,000 EQUITY SHARES @ RS.10/- EACH 2,99,07,750 EQUITY SHARES @ RS.10/ - EACH 9 ITA NO.6388/DEL/2017 DISTINCTIVE NUMBERS : 1 TO 3,03,57,750 SCRIP CODE : 512379 GROUP : T MARKET LOT : 1 FACE VALUE & PAID UP VALUE : RS. 10/- EACH FULLY PAID UP SCRIP ID ON BOLT SYSTEM : CRESSAN ABBREVIATED NAME ON BOLT SYSTEM : CRESSANDA SO ISIN NO. : INE716D01025 THE BRIEF PARTICULARS OF THE SCHEME OF REDUCTION IN CAPITAL ARE AS MENTIONED BELOW: THE SCHEME OF REDUCTION IN CAPITAL OF THE COMPANY W AS APPROVED BY HON'BLE HIGH COURT OF BOMBAY VIDE ITS ORDER DATED J ANUARY 24, 2C13. B) AS PER THE SCHEME, THE ISSUED, SUBSCRIBED AND PA ID-UP EQUITY CAPITAL OF THE COMPANY STANDS REDUCED FROM RS. 900 LACS CONSISTING OF 90,00,000 EQUITY SHARES OF FACE VALUE OF RS. 10/ - EACH TO RS.45 LACS CONSISTING OF 4,50,000 EQUITY SHARES OF RS. 10 /- EACH BY WAY OF REDUCTION OF SHARE CAPITAL BY 95%, FOLLOWED BY AMAL GAMATION OF SMARTCHAMPS IT & INFRA LIMITED (SMARTCHAMPS) AND IN CONSIDERATION THEREOF CRESSANDA HAS ISSUED AND ALLOTTED 2,99,07,7 50 EQUITY SHARES OF RS.10/- EACH FULLY PAID UP IN THE RATIO O F 1:1 I.E. 1 EQUITY SHARE OF RS.10/- EACH OF CRESSANDA FOR EVERY 1 EQUI TY SHARE OF RS.10/- EACH HELD IN SMARTCHAMPS AS ON THE RECORD D ATE. 3. AS PER EXCHANGE NOTICE NO 20130214-22 DATED FEBR UARY 14, 2013 THE COMPANY HAD FIXED FEBRUARY 20, 2013 AS REC ORD DATE FOR GIVING EFFECT TO THE REDUCTION OF SHARE CAPITAL. 4. TRADING MEMBERS OF THE EXCHANGE MAY ALSO NOTE TH AT IN RESPECT OF SHARES HELD IN PHYSICAL FORM, THE COMPANY HAS ISSUE D NEW CERTIFICATES WITHOUT SURRENDER OF THE OLD CERTIFICA TES OF THE COMPANY AND ACCORDINGLY OLD CERTIFICATES SHALL STAND CANCEL LED. 5. TRADING MEMBERS OF THE EXCHANGE ARE INFORMED THA T THE EQUITY SHARE CERTIFICATES IN PHYSICAL FORM BEARING THE UND ER MENTIONED DISTINCTIVE NUMBERS OF THE COMPANY AS STATED ALONGS IDE SHALL BE GOOD/BAD DELIVERY IN THE MARKET. SR. NO. NAME OF THE COMPANY APPEARING ON THE SHARE CERTIFICATE DISTINCTIVE NUMBERS DATE OF ISSUE GOOD/BAD DELIVERY 1 CRESSANDA SOLUTIONS LIMITED 1- 90,00,000 BEFORE RECORD DATE BAD 2 CRESSANDA SOLUTIONS LIMITED 1- 4,50,000 AFTER RECORD DATE GOOD 10 ITA NO.6388/DEL/2017 HENCE, TRADING MEMBERS SHOULD TAKE DUE CARE AND ABU NDANT CAUTION WHILE DEALING/RECEIVING/DELIVERING THESE SH ARES OF THE COMPANY FROM/TO THE MARKET. AS PER THE DOCUMENTS FILED BY THE APPELLANT, THE DI STINCTIVE NUMBERS IN RESPECT OL SMART CHAMP IT & INFRA LTD. WERE 3435 001 TO 3445000 WHILE AFTER THE SCHEME OF AMALGAMATION, THE DISTINC TIVE NUMBERS HAVE NOF BEEN MENTIONED. THE DISTINCTIVE NUMBOI HAS BEEN MENTIONED AS NOT APPLICABLE, WHILE AS PER THE ABOVE CLARIFICATION THERE ARE CERTAIN DISTINCTIVE NUMBER WHICH ARE BAD DELIVERY AND CERTAIN DISTINCTIVE NUMBERS WHICH ARE GOOD DELIVERY . EVEN THE CONTRACT ISSUED BY M/S. SARA SECURITIES PVT. LTD. D OES NOT MENTION DISTINCTIVE NUMBERS OF THE SHARES SOLD. 7.3.3 IN THIS RESPECT, IT IS ALSO PERTINENT TO MENT ION THAT THOUGH ASSESSEE HAS FURNISHED THE PROOF OF SOURCE FOR THE PURCHASE TRANSACTIONS, HOWEVER, IT IS UNBELIEVABLE THAT THE SHARES ROLLS 42 TIMES OVER A PERIOD OF JUST 01 MONTH FROM 14.03.201 3 (DATE OF LISTING) TO 26.04.2013 (DATE OF SALE). THE SHARES POST AMALG AMATION WERE RECEIVED IN THE MONTH OF MARCH, 2013 AT FACE VALUE OF RS.10/- PER SHARE AND WERE SOLD ON 26.04.2013 AT RS.420/- PER S HARE. THUS, THE ENTIRE TRANSACTIONS ARE AGAINST HUMAN PROBABILITY. THERE IS ENOUGH MATERIAL TO RAISE A VERY STRONG SUSPICION, TO QUEST ION THE AUTHENTICITY OF THE TRANSACTION AND REJECT THE PAPER TRAIL CREAT ED BY THE APPELLANT AND REQUIRE THE ASSESSEE TO SHOW THAT THE TRANSACTI ON IS REALLY ONE WHICH IS ABOVE BOARD WHICH THE APPELLANT HAS FAILED TO PROVE. .. 6.2 IN THE FACTS AND CIRCUMSTANCES OF THE CASE, WHERE THE PURCHASE HAS NOT BEEN DONE THROUGH OPEN PLATFORM OF RECOGNIZED STOCK EXCHANGE AND THE SEBI HAS ALSO NOTICED ABNORM AL ACTIVITIES OF ARTIFICIAL PRICE RIGGING IN THE SHARES OF M/S CR ESSAND SOLUTIONS LTD., THE ASSESSEE HAS FAILED IN DISCHARGING HIS ON US OF SUBSTANTIATING THE TRANSACTION OF LONG-TERM CAPITAL GAIN AS A REAL TRANSACTION. THE ORDER OF THE LEARNED CIT(A) ON THE ISSUE IN DISPUTE IS WELL REASONED AND WE DO NOT FIND ANY INF IRMITY THE SAME. ACCORDINGLY, WE UPHOLD THE SAME. THE GROUNDS RAISED BY THE ASSESSEE ARE DISMISSED. 11 ITA NO.6388/DEL/2017 6.3 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH JUNE, 2021 SD/- SD/- (KUL BHARAT) (O.P. KANT) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 28 TH JUNE, 2021. RK/- (DTDS) COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR ASST. REGISTRAR, ITAT, NEW DELHI