Pulin Investments Pvt. Ltd. DCIT (ITAT Delhi)
The ITAT Delhi allowed the appeal of Pulin Investments Pvt. Ltd. for AY 2014-15 against the order of the CIT(A), concerning an addition of Rs.2,43,67,499/- relating to losses from sale of listed shares. The assessee, engaged in investment in shares and securities, had declared a loss of Rs.50,68,618/-. The Assessing Officer, relying on information from the Investigation Wing concerning alleged accommodation entries in listed shares, treated the claimed loss as non-genuine and made the addition under Section 68 by assessment order dated 29.12.2016 under Section 143(3). The CIT(A) upheld the addition but sustained it under Section 69B.
Before the Tribunal, the assessee submitted that the shares formed part of a composite en-bloc acquisition of thirteen listed companies under a tripartite MOU involving M/s Transparent Shares & Securities Pvt. Ltd. and M/s SMC Global Securities Ltd. The shares were acquired on 15.03.2013 at approximately a 10% discount to the prevailing BSE market quotation. The assessee relied on contract notes, broker ledgers, settlement statements, demat records, bank statements, audited books and other documents. It also submitted that the acquisition, source of investment, demat credit, banking trail and several transactions from the same basket had not been disputed. The Revenue, according to the assessee, had selectively isolated three scrips without establishing any connection with an alleged accommodation-entry provider or price manipulator.
