ITO-1(1), Agra V. Sh. Ajay Bansal, Agra

ITA 87/AGR/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7034 (ITAT-AGRA)
• Duration Of Justice: 1 year(s) 1 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-05-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-05-2011
• Assessment Year: 2001-2002
• Appeal Filed On: 06-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Gift; Income from undisclosed sources; Accommodation entries
• Section: 54F; 147; 148; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 87/AGRA/2010 ASSTT. YEAR : 2001-02 INCOME-TAX OFFICER, VS. SHRI AJAY BANSAL, 1(1), AGRA. 1-PRAKASH ENCLAVE, BYE PASS ROAD, AGRA. (PAN : ABSPB 3700 F) (APPELLANT) (RESPONDENT) FOR APPELLANT : SHRI A.K. SHARMA, JR. D.R. FOR RESPONDENT : APPLICATION REJECTED. ORDER PER P.K. BANSAL, A.M. : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A) ON THE FOLLOWING EFFECTIVE GROUNDS : 1. THAT THE LD. CIT(APPEALS)-I, AGRA HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.6,68,135/- & RS.13,363/ - MADE U/S. 68 OF THE ACT BY THE A.O. ON ACCOUNT OF BOGUS ENTRIES OF CAPI TAL GAIN AND BROKERAGE THEREON WITHOUT APPRECIATING THE FACTS OF THE CASE. 2. BY DOING SO, THE LD. CIT(A)-1, AGRA IS BAD IN LA W AND ON FACT BECAUSE IN ALLOWING THE ASSESSEES APPEAL HE HAS COMPLETELY IGNORED THE FACT THAT IT HAS VEHEMENTLY BEEN PROVED THAT THE AMOUNTS INTRODU CED AS CASH CREDITS WERE ASSESSEES OWN UNACCOUNTED MONEY ROUTED THROUG H THE LOAN ENTRIES. 2. THE BRIEF FACTS OF THE CASE ARE THAT PROCEEDINGS U/S. 147 WERE INITIATED BY THE ASSESSING OFFICER AGAINST THE ASSESSEE BY ISSUING NOTICE U/S. 148 DATED 25.03.2008 ON THE BASIS OF INFORMATION RECEIVED FROM THE ADDL. COMMISSIONER OF INCOME-TAX-1, AGRA TO THE EFFECT THAT THE SHARE BROKER M/S. AYUSHI STOCK BROKERS (P) LTD. SAN JAY PLACE, AGRA WAS FOUND ENGAGED IN THE BUSINESS OF PROVIDING ACCOMMODATION ENTRIES OF BOGU S LONG-TERM CAPITAL GAIN, SHARE APPLICATION 2 MONEY, GIFTS ETC. IN LIEU OF CASH RECEIVED FROM VAR IOUS BENEFICIARIES. THE ASSESSEE IS ALSO ONE OF THE BENEFICIARIES FIGURING IN THE LIST SUPPLIED AND THE AMOUNT OF RS.6,69,475/- HAS BEEN REMITTED TO THE ASSESSEE FROM M/S. AYUSHI STOCK BROKERS (P) LTD. THROUGH CHEQUE/DD WHEREAS THE TRANSACTION WAS FOUND TO BE BOGUS. THE ASSESSING OF FICER THEREFORE, CONCLUDED THAT THE ENTIRE AMOUNT RECEIVED BY THE ASSESSEE THROUGH BANK DRAFT FROM THE AFORESAID SHARE BROKER AS ACCOMMODATION ENTRIES REGARDING SALE OF SHARE OF RS .6,68,135/- AND COMMISSION THEREON AT THE RATE OF 2% OF RS.13,363/- WAS ASSESSEE INCOME FROM UNDISCLOSED SOURCES, AS NO SHARES TRANSACTION ACTUALLY TOOK PLACE TO CLAIM LONG-TERM CAPITAL GAIN AND EXEMPTION THEREOF U/S. 54F OF THE ACT AND ADDED THE SAME U/S. 68 OF THE ACT. THE LD. CIT(A) ON THE BASIS OF DOCUMENTS FURNISHED IN RESPECT OF SHARE TRANSACTION AND AFTER CONSIDERING THE REPLY OF ASSESSEE DELETED THE ADDITION. 3. WE HAVE HEARD THE LD. DR AND PERUSED THE MATERIA L AVAILABLE ON RECORD. THE APPLICATION FOR ADJOURNMENT FILED ON BEHALF OF THE ASSESSEE WAS REJECTED FOR WANT OF PLAUSIBLE REASON. WE NOTED THAT THE CIT(A) HAS RIGHTLY DELETED THE ADDIT ION. IT IS NOTABLE THAT THE ASSESSEE HAD FURNISHED SUBSTANTIAL EVIDENCE TO PROVE THE PURCHAS E AND SALE OF SHARES. THE ASSESSEE HAD FURNISHED COPY OF THE SALE BILL NO. MSPL/SIOCT/30/0 02 DATED 30.10.99 ISSUED BY BROKER COMPANY MOTELY SECURITIES PRIVATE LTD., DETAILS OF PURCHASE OF 10,000 SHARES OF G.K. CONSULTANT LTD., COPY OF ACCOUNT STATEMENT REGARDING THE ABOVE DEAL OF SHARE IN THE BOOKS OF THE BORKER COMPANY, THE RECEIPT ISSUED BY THE SAID COMPANY, CO PY OF CONTRACT NOTE (FORM-A), COPY OF PURCHASE BILL ISSUED BY THE BROKER M/S. AYUSHI STOC K BROKERS PVT. LTD. (FORMERLY COSMOS FINANCIAL SERVICES PVT. LTD.), COPY OF THE ACCOUNT STATEMENT IN THE CONFIRMATION CERTIFICATE OF AYUSHI STOCK BROKERS PVT. LTD. AND COPIES OF DRAFTS THROUGH WHICH THE SALE PROCEEDS WAS RECEIVED. THE ASSESSEE HAD ALSO RELIED ON VARIOUS O RDERS OF ITAT. WE NOTED THAT ENQUIRIES WERE 3 MADE BY THE INVESTIGATION WING, AGRA WITH REGARD TO THE IMPUGNED SHARE TRANSACTIONS, BUT NO ADVERSE FINDING OF THE INVESTIGATION WING WAS BROUG HT ON RECORD. THE SHARES OF G.K. CONSULTANTS LTD. WERE LISTED SHARES AT CALCUTTA STOCK EXCHANGE. THERE IS NOTHING ON RECORD TO SHOW THAT ALL THESE DOCUMENTS ARE FALSE OR FABRICATED. IN VIEW OF ALL THESE DOCUMENTS, WE ARE OF THE CONSIDERED OPINION THAT THE LD. CIT(A) HAS COMMITTED NO ERROR IN DELETING THE ADDITION MADE BY THE ASSESSING OFFICER. THEREFORE, THE ORDER OF CIT(A) N EEDS NO INTERFERENCE. 4. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25.05.2011. SD/- SD/- (H.S. SIDHU) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 15 TH JUNE, 2011 *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A) BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE ASSISTANT REGISTRAR TRUE COPY