M/s Pankaj Agarwal & Sons (HUF) Vs ITO (ITAT Chennai)
Facts –
Assessee return was selected for scrutiny, wherein, AO treated purchase and sale of shares of M/s. SRK as sham transactions and claim of exemption u/s 10 (38) was denied and the same was treated as unexplained cash credit u/s 68.
AO argued that the company in which the assessee had purchased equity shares had no creditability and no prudent investor would make such investment. As per investigation report, the members who participated in the trading of the scrip during mid-2013 to mid-2014 were part of syndicate of brokers and brokering entities including price rigging. AO contended that the price manipulation is only to bring out their black money as legitimately earned LTCG for exemption u/s 10 (38) of the Act.
Assessee however submitted that they were not provided the opportunity to cross examine the witness who were relied by the revenue and further AO failed to furnish the investigation report before concluding the assessment and hence demanded the remand the matter back for fresh consideration.
Held –
Assessee could not justify before us any of their claims made before the AO that the transaction was genuine. Further the assessee could not successfully controvert to any of the findings of the AO before us which are against the assessees.
Assessee come out with the plea that they were not provided with opportunity of cross-examining the witness, the investigation report was not furnished and proper opportunity was not provided of being heard. However we find that all these arguments raised by the assessee before us was never alleged before the AO when the matter was before them.
In this situation we do not have any other option but to confirm the orders of the AO in the case of all the assessee because the Ld. AO as well as the Ld.CIT(A) have arrived at their respective decisions after considering the issues in the appeal in detail and there is nothing before us to disturb their findings.
FULL TEXT OF THE ITAT JUDGMENT
These appeals by the assessees are directed against the orders passed by the learned Commissioner of Income Tax (Appeals)-12, Chennai as detailed herein below for the assessment year 2014-15 passed U/s.250(6) r.w.s.143(3) of the Act :-
