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\n* IN THE HIGH COURT OF DELHI AT NEW DELHI
\n+ ITA 220\/2019 & CM No. 10774\/2019
\nUDIT KALRA ….. Appellant
\nThrough : Mr. Rajesh Mahna, Mr. Manu
\nGiri, Mr. Ramanand Roy, Mr.
\nRohit Sharma and Mr. Dev Raj
\nSharma, Advs.
\nversus
\nITO WARD-50(1) ….. Respondent
\nThrough : Mr. Zoheb Hossain, Sr.
\nStanding Counsel with
\nMr.Deepak Anand, Jr. Standing
\nCounsel for Revenue.
\nCORAM:
\nHON’BLE MR. JUSTICE S. RAVINDRA BHAT
\nHON’BLE MR. JUSTICE PRATEEK JALAN
\nO R D E R
\n% 08.03.2019
\nThe assessee is aggrieved by the concurrent findings of the tax
\nauthorities \u2013 including the lower appellate authorities rejecting its
\nclaim for a long term capital gain reported by it, to the tune of
\nRs.13,33,956\/- and Rs.14,34,501\/- in respect of 4,000 shares of M\/s
\nKappac Pharma Ltd. The assessee held those shares for approximately
\n19 months; the acquisition price was Rs.12\/- per share whereas the
\nmarket price of the shares at the time of their sale, was Rs.720\/-. It is
\ncontended that the assessee was not granted fair opportunity.<\/p>\n
Mr. Rajesh Mahna, learned counsel appearing for the assessee
\nrelied upon the orders of the co-ordinate Bench of the tribunal, in
\nrespect of the same company i.e. M\/s Kappac Pharma Ltd., and
\npointed out that the tax authority\u2019s approach in this case was entirely
\nerroneous and inconsistent.<\/p>\n
The main thrust of the assessee\u2019s argument is that he was denied
\nthe right to cross-examination of the two individuals whose statements
\nled to the inquiry and ultimate disallowance of the long term capital
\ngain claim in the returns which are the subject matter of the present
\nappeal.<\/p>\n
This court has considered the submissions of the parties. Aside
\nfrom the fact that the findings in this case are entirely concurrent \u2013
\nA.O., CIT(A) and the ITAT have all consistently rendered adverse
\nfindings \u2013 what is intriguing is that the company (M\/s Kappac Pharma
\nLtd.) had meagre resources and in fact reported consistent losses. In
\nthese circumstances, the astronomical growth of the value of
\ncompany\u2019s shares naturally excited the suspicions of the Revenue.<\/p>\n
The company was even directed to be delisted from the stock
\nexchange. Having regard to these circumstances and principally on
\nthe ground that the findings are entirely of fact, this court is of the
\nopinion that no substantial question of law arises in the present appeal.
\nThis appeal is accordingly dismissed.
\nS. RAVINDRA BHAT, J
\nPRATEEK JALAN, J
\nMARCH 08, 2019
\naj<\/p>\n","protected":false},"excerpt":{"rendered":"
There was a specific information that assessee has indulged in non-genuine and bogus capital gain obtained from the transactions of purchase and sale of shares of M\/s Kappac Pharma Ltd., a Mumbai based company. It is noticed that the purchase transaction has been done off market in physical form by paying cash. The assessee has purchased the share M\/s Kappac Pharma Ltd. in physical form and thereafter, the same have been converted into electronic mode. The purchase payments were made in cash and not through the normal banking channel therefore the same were non verifiable from the authentic supporting details such as bank account\/ documents. Assessee is not a regular investor in shares. The assessee has failed to furnish the proof of source for the purchase transactions. Thus, the entire transactions are against human probability<\/p>\n