{"id":39871,"date":"2024-03-08T12:07:32","date_gmt":"2024-03-08T06:37:32","guid":{"rendered":"https:\/\/itatonline.org\/digest\/pcit-v-ziauddin-walve-bomhc-www-itatonline-org\/"},"modified":"2024-03-08T12:07:32","modified_gmt":"2024-03-08T06:37:32","slug":"pcit-v-ziauddin-walve-bomhc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/pcit-v-ziauddin-walve-bomhc-www-itatonline-org\/","title":{"rendered":"PCIT v. Ziauddin Walve (Bom)(HC) www.itatonline .org"},"content":{"rendered":"<p>The assessee purchased \u00a0shares Ramkrishna Fincap Ltd. (RFL ) . at par in February 2004 and demated the same immediately in March 2004. \u00a0Purchase of \u00a0these shares happened in the off market and not through exchange. Payments were not done through banking channels. \u00a0The shares were purchased at a rate as low as Rs.2.5\/- to Rs.3\/- per share in February 2004 and they were sold at a rate extremely as high as Rs.125\/- to Rs.185\/- per share in the Kolkata Stock Exchange. The AO \u00a0made addition of Rs.1,03,33,925\/- u\/s. 68 of the Act. The AO held the financials of RFL are too weak to command such a high price and, therefore, he came to the conclusion that the transactions related to the shares were sham and not genuine. It is a case of colourable device. \u00a0On appeal the CIT(A) deleted the addition. \u00a0On appeal by the Revenue\u00a0 on behalf of the assessee , \u00a0\u00a0it was contended that there is no iota of deficiencies of any kind found by the AO with regard to the documentation i.e. purchase and sale bills, contract notes, cheque payments, SEBI transactions etc. It is a straight case of buying shares of RFL though bona fide transactions involving the stock exchange and selling of the same for earning Long term capital gains. The gains are exempt from tax. The AO has not brought out any incriminating evidence or material to demonstrate that the transactions are sham or bogus or entered with any mala fide intentions of converting unaccounted money into accounted gains. \u00a0Dismissing the appeal of the Revenue the Tribunal held that the decision of the AO is not valid and appropriate as there is no adverse criticism on the relevant documentation involving these share transactions. There is no allegation against the assessee individually as involved in price rigging. Accordingly the Tribunal affirmed the order of the CIT(A) .On appeal High Court affirmed the order of the Tribunal and dismissed the appeal of the Revenue. \u00a0\u00a0( Arising out of ITA Nos 5182 &amp; 5183\/Mum\/2011 \u00a0\u00a0dt.9-9 -2016) (AY, 2005 -06, 2006 -07) \u00a0<strong>(<\/strong>ITA No. 2012 of 2017 dt. 4 -3 \u20132022) (AY. 2005 -0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S. 68 : Cash credits \u2013 Long term capital gains \u2013 Penny stock \u2013Not subjected to any enquiry by SEBI &#8211; Sold through DMAT account \u2013  STT paid &#8211; Purchased at a rate as low as Rs.2.5\/- to Rs.3\/- per share  and they were sold at a rate extremely as high as Rs.125\/- to Rs.185\/- per share- Order of Tribunal deleting the addition is affirmed .  [ S. 10(38), 45,  260A ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-39871","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-an5","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39871","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=39871"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39871\/revisions"}],"predecessor-version":[{"id":39872,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/39871\/revisions\/39872"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=39871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=39871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=39871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}