Sh. Vishal Sharma, Ludhiana v. ACIT, Ludhiana

ITA 1170/CHANDI/2010 | 2004-2005
Pronouncement Date: 28-11-2011 | Result: Dismissed

Appeal Details

RSA Number 117021514 RSA 2010
Assessee PAN AFTPS0928K
Bench Chandigarh
Appeal Number ITA 1170/CHANDI/2010
Duration Of Justice 1 year(s) 2 month(s)
Appellant Sh. Vishal Sharma, Ludhiana
Respondent ACIT, Ludhiana
Appeal Type Income Tax Appeal
Pronouncement Date 28-11-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-11-2011
Date Of Final Hearing 22-11-2011
Next Hearing Date 22-11-2011
Assessment Year 2004-2005
Appeal Filed On 28-09-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHE A CHANDIGARH BEFORE SH. H.L. KARWA HONBLE VICE PRESIDENT AND SH. D.K. SRIVASTAVA ACCOUNTANT MEMBER ITA NO.1170/CHD/2010 ASSESSMENT YEAR :2004-05 PAN:AFTPS0928K SH. VISHAL SHARMA VS. ASSTT. COMMISSIONER OF INCO ME-TAX S/O SH. HARI DUTT CIRCLE-1 LUDHIANA. LUDHIANA. (APPELLANT) (RESPONDENT) ASSESSEE BY: SH. S.R. CHHABRA ADV DEPARTMENT BY: SH. AKHILESH GUPTA DR DATE OF HEARING: 22.11.2011 DATE OF PRONOUNCEMENT:28.11.2011 ORDER D K SRIVASTAVA: THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER PASSED BY THE LD. CIT(A) ON 13.8.2010 ON THE FOLLOWING GROUNDS: 1. THAT THE REOPENING OF ASSESSMENT U/S 147 IS B ECAUSE OF CHANGE OF OPINION ON THE ISSUE ALREADY DECIDED U /S 143(3) BY ACIT CIRCLE-1 LUDHIANA VIDE ORDER DATED 27.0 9.2006. 2. THAT THE LD. CIT(A)-1 LUDHIANA HAS WRONGLY HE LD THAT APPELLANT HAS FAILED TO FURNISH DOCUMENTS TO PRO VE THE GENUINENESS OF PURCHASE & SALE OF SHARES. 3. THAT THE ORDER OF THE LD. CIT(A)-1 LUDHIANA I S LIABALE TO BE SET ASIDE AND APPEAL OF THE APPELLANT BE ADMI TTED AND ITA NO.1170/CHD/2010 2 ORIGINAL ASSESSMENT MADE BY THE ACIT CIRCLE-! U /S 143(3) BY ORDER DATED 27/09/2006 BE RESTORED. 4. THAT THE ORDER PASSED BY THE CIT(APPEALS)-1 L UDHIANA IS AGAINST THE SPIRIT OF LAW & FACTS OF THE CASE. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTER ANY GROUND OF APPEAL IS HEARD AND FINALLY DISPOSED O FF. 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE FILED HIS ORIGINAL RETURN OF INCOME ON 10.03.2005 SHOWING TOT AL INCOME OF RS.8 21 528/-. ASSESSMENT ORDER UNDER SECTION 143(3 ) WAS PASSED ON 27.9.2006 ASSESSING TOTAL INCOME AT RS.8 66 896/-. PERUSAL OF THE AFORESAID RETURN SHOWS THAT THE ASSESSEE HAD RETURNED LONG TE RM CAPITAL GAIN OF RS.7 10 775/- FROM SALE OF SHARES OF M/S. COUNTRY CREDIT CAPITAL LTD. SINCE THE ASSESSEE HAD RETURNED CAPITAL GAIN AS LONG TERM CAPITAL GAIN THE ASSESSEE PAID CONCESSIONAL RATE OF TAX I.E. 10% ON THE SAID CAPITAL GAIN. 3. SURVEY OPERATIONS CARRIED OUT BY THE DEPARTMENT AT THE PREMISES OF M/S. SUNRISE STOCK & SERVICES PVT. LTD. FOLLOWED BY VERIFICATION REVEALED THAT THE TRANSACTIONS IN SHARES OF M/S. CCCL CARRIE D OUT THROUGH M/S. SUNRISE STOCK & SERVICES PVT. LTD. WERE BOGUS. IN THE PRESENT CASE ALSO THE ASSESSEE HAD REPORTEDLY SOLD SHARES THROUGH M/S. SUNRISE STOCK & SERVICES PVT. LTD. ON THE BASIS OF INFORMATION GATHERED AS A RESULT OF SURVEY CARRIED OUT AT THE PREMISES OF M/S. SUNRISE STOCK & SERVICE S PVT. LTD. AND VERIFICATION SUBSEQUENTLY CARRIED OUT THE A.O. FOR MED PRIMA FACIE BELIEF THAT ITA NO.1170/CHD/2010 3 INCOME OF THE ASSESSEE CHARGEABLE TO TAX HAS ESCAPE D ASSESSMENT. HE THEREFORE REOPENED THE ASSESSMENT UNDER THE MAIN PR OVISIONS OF SECTION 147 OF THE ACT PURSUANT TO WHICH RETURN OF INCOME WAS F ILED BY THE ASSESSEE ON 5.4.2007 RETURNING TOTAL INCOME AT RS.8 28 040/-. A FTER HEARING THE ASSESSEE ELABORATELY THE A.O. COMPLETED THE ASSESSMENT U/S 143(3)/137 OF THE INCOME-TAX ACT ON 28.12.2007 ASSESSING THE TOTAL I NCOME AT RS.8 64 040/-. PERUSAL OF THE ASSESSMENT ORDER SHOWS THAT THE ASSE SSEE CLAIMED TO HAVE RECEIVED A SUM OF RS.7 10 775/- ON SALE OF SHARES A ND THUS CREDITED A SUM OF RS.7 10 775/- IN HIS BOOKS OF ACCOUNT FOR THE YEAR UNDER APPEAL. FOR THE DETAILED REASONS GIVEN BY THE A.O. IN THE ASSESSMEN T ORDER THE SALE OF SHARES WAS HELD TO BE BOGUS AND THEREFORE A SUM OF RS.7 10 775/- BEING THE AMOUNT CREDITED TO THE BOOKS OF ACCOUNT FOR THE YEAR UNDER APPEAL WAS TREATED AS UNEXPLAINED AND SUBSEQUENTLY ADDED TO THE INCOME OF THE ASSESSEE. 4. AGGRIEVED BY THE ORDER PASSED BY THE A.O. THE A SSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT(A). THE ASSESSEE CH ALLENGED THE VALIDITY OF THE PROCEEDINGS INITIATED BY THE A.O. UNDER THE MAI N PROVISIONS OF SECTION 147 AS ALSO THE ACTION OF THE A.O. IN TREATING SAL E OF SHARES AS BOGUS AND CONSEQUENTLY TAXING THE SALE PROCEEDS THEREOF AS I NCOME OF THE ASSESSEE FROM UNEXPLAINED SOURCES. 5. THE LD. CIT(A) HAS DEALT WITH BOTH THE ISSUES ELABORATELY IN PARA 3.3 TO 4.1 OF HIS APPELLATE ORDER AS UNDER: ITA NO.1170/CHD/2010 4 3.3. I HAVE CONSIDERED THE FACTS OF THE CASE AND SUBMISSIONS MADE BY THE AR. IN THIS CASE AS ALREADY STATED ABOVE THE ASSESSEE HAS SHOWN LONG TERM CAPITAL GAIN OF RS.7 10 775/- FROM SALE OF M/S. COUNTRY CREDIT CAPITAL LTD. HEREINAFTER REFERRED TO AS M/S . CCCL. THESE SHARES WERE SOLD THROUGH M/S. SUNRISE STOCK & SERVICES P VT. LTD. WHICH WAS FOUND TO HAVE BEEN ENGAGED IN GIVING BOGUS EN TRIES OF LONG TERM CAPITAL GAIN BY SHOWING FICTITIOUS TRANSACTI ONS IN THE SHARES OF M/S. CCCL. THIS FACT WAS DISCLOSED DURING THE S URVEY OF M/S. SUNRISE STOCK & SERVICES PVT. LTD. IN FACT AS NOTE D IN THE ASSESSMENT ORDER IN SEVERAL CASES OF LUDHIANA THE SHARES TRA NSACTIONS IN SHARES OF M/S. CCCL HAVE BEEN FOUND TO BE BOGUS AFTER VERIF ICATION. IN VIEW OF THE ABOVE THE ASSESSING OFFICER HAD REASONS T O BELIEVE THAT THE INCOME HAS ESCAPED IN THE ASSESSMENT YEAR 2004-05 THE YEAR UNDER CONSIDERATION. THE COPIES OF REASONS RECORDED WAS SUPPLIED TO THE ASSESSEE BY THE ASSESSING OFFICER ON 5.12.2007. AS ALREADY SAID THE ASSESSEE OBJECTED TO THE REOPENING OF THE CAS E BY FILING HIS SUBMISSIONS WHICH HAVE BEEN DISPOSED OF BY THE ASS ESSING OFFICER BY PASSING A SEPARATE ORDER. IN APPEAL DURING THE CO URSE OF APPELLATE PROCEEDINGS THE AR HAS PRIMARILY RAISED OBJECTION S AGAINST THE REOPENING OF THE CASE. THE ASSESSING OFFICER HAS DISCUSSED THIS ISSUE IN GREAT DETAIL IN BOTH OF HIS ORDERS I.E. FIRST I N THE ORDER DATED 18.12.2007 REJECTING THE ASSESSEES OBJECTIONS AGA INST THE REOPENING OF THE CASE AND THEN IN THE ORDER DATED 28.12.2007 PA SSED UNDER SECTION 143(3) OF THE ACT. THE ASSESSING OFFICERS BOTH OR DERS ARE SPEAKING WHEREIN HE HAS GIVEN FULL DETAILS OF THE FACTS AND CIRCUMSTANCES LEADING TO THE FACT THAT THE APPELLANT HAS SHOWN B OGUS PURCHASES AND SALES OF SHARES OF M/S. CCCL. ASSESSING OFFICER AC CORDINGLY HAS MADE THE ADDITION OF RS.7 10 775/- AFTER CONDUCTI NG ENQUIRIES. THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE FAIL ED TO FURNISH DOCUMENTS TO PROVE THE GENUINENESS OF THE PURCHASE AND SALE PRICE OF THE SHARES. IN HIS STATEMENT THE APPELLANT SH. VI SHAL SHARMA ADMITTED THAT HE DID NOT KNOW ANY THING ABOUT THE SHARES HE WAS TRADING IN AND IT WAS HIS ACCOUNTANT SH. PANKAJ SHARMA WHO USED T O TRANSACT ALL SHARE BUSINESS. WHEN ASKED TO PRODUCE SH. PANKAJ SHARMA THE ASSESSEE STATED THAT THE ACCOUNTANT COULD NOT BE PRODUCED. 3.4. THE ASSESSING OFFICER ALSO CONDUCTED ENQUIRIE S FROM M/S. SUNRISE STOCK & SERVICES PVT. LTD. THROUGH WHOM TH E SHARES WERE SOLD AND FROM M/S. SHIV PURI & CO. THROUGH WHOM TH E SHARES STATED TO HAVE BEEN PURCHASED. HOWEVER BOTH THE COMPANIES F AILED TO PRODUCE THE BOOKS OF ACCOUNTS. THE ASSESSING OFFICER ALSO CONDUCTED ENQUIRIES ITA NO.1170/CHD/2010 5 FROM LEADING STOCK EXCHANGES OF DELHI MUMBAI AHM EDABAD CALCUTTA MADHYA PRADESH AND LUDHIANA. SURPRISINGL Y IN NONE OF THE STOCK EXCHANGES EITHER THE SHARE OF M/S. CCCL WERE NOT LISTED OR THERE WAS NO TRANSACTION DURING THE RELEVANT PERIO D. EVEN ENQUIRIES FROM M/S. CCCL DID NOT YIELD ANY RESULTS FAVOURING THE ASSESSEE. THE ENQUIRIES FROM THE REGISTRAR OF COMPANY JALANDHA R SHOWED THAT M/S. CCCL WAS IN LOSS IN THE YEAR ENDING 31.3.2002 31. 3.2003 AND 31.3.2004 AS NOTED ON THE PAGE 7 AND 8 OF THE ASSE SSMENT ORDER. THE NAV SHARE PER SHARE WAS RS.7.05 ON 31.3.2002 RS.7 .08 ON 31.3.2003 AND RS.7.05 ON 31.3.2004. 3.5. FROM THE ABOVE THE ASSESSING OFFICER CONCLUD ED THAT ON THE DATE OF SALE OF SHARES THE MARKET VALUE PER SHARE COULD NOT HAVE BEEN MORE THAN NAV OF RS.7.08 AS ON 31.3.2004 THE NEAR EST CLOSING DATE PRIOR TO THE DATE OF SALE. ENQUIRIES FROM THE BANK REVEALED THAT THE CASH WAS DEPOSITED IN THE ACCOUNT OF M/S. SUNRISE STOCK & SERVICES PVT. LTD. EITHER ON THE SAME DATE OR ON WHICH THE CHEQUE WAS CLEARED OR IMMEDIATELY EARLIER TO THE DATE OF CLEARING OF THE CHEQUES AS NOTED ON PAGE 9 OF THE ASSESSMENT ORDER. THE APPELLANT HAD NO DEMAT ACCOUNT IN F.Y. 2003-04 AND SHARES HAVE BEEN TRADE D IN PHYSICAL FORM ONLY. IN FACT IN THE COURSE OF SURVEY UNDER SECTIO N 133A IN THE CASE OF M/S. SUNRISE STOCK & SERVICES PVT. LTD. ON 15.6.20 04 STATEMENT OF SH. HARVINDER SINGH ACCOUNTANT OF M/S. SURYA SCRIPTS PVT. LTD. AND DIRECTOR OF M/S. SUNRISE STOCK SERVICES PVT. LTD. WAS RECORDED WHEREIN HE HAD CONFIRMED THAT THERE WAS NO ACTUAL PURCHASE AND SALE OF SHARES OF M/S. CCCL. 3.6. FROM THE ABOVE DISCUSSION AND ALSO FROM THE D ETAILED DISCUSSION MADE IN BOTH THE ORDERS OF THE ASSESSIN G OFFICER (SUPRA) IT IS EVIDENT THAT APPELLANT HAS INDULGED IN INTRODU CING THE AMOUNT OF RS.7 71 750/- IN THE FORM OF LONG TERM CAPITAL GAI N FROM THE BOGUS PURCHASE AND SALE OF SHARES OF M/S. CCCL. THEREFOR E THE ADDITION MADE ON THIS ACCOUNT IS UPHELD. 4. REGARDING PARA 7 OF ASSESSEES OBJECTIONS AGAIN ST THE REOPENING OF THE CASE THE SAME ARE NOT ACCEPTED. AS PER IST PROVISO TO SECTION 147 OF THE ACT WHERE AN ASSESSMENT UNDER SUB SECTION (3) OF SECTI ON 143 OR THIS SECTION HAS BEEN MADE FOR THE RELEVANT ASSESSMENT YEAR NO ACTION SHALL BE TAKEN UNDER THIS SECTION AFTER THE EXPIRY OF FOUR YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR UNLE SS ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT YEAR BY ITA NO.1170/CHD/2010 6 REASON OF THE FAILURE ON THE PART OF THE ASSESSEE TO MAKE A RETURN UNDER SECTION 139 OR IN RESPONSE TO A NOTICE ISSUE D UNDER SUB-SECTION (1) OF SECTION 142 OR SECTION 148 OR TO DISCLOSE F ULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR THIS ASSESSMENT FOR THAT ASSESSMENT YEAR. IN THE CASE OF THE APPELLANT AS ALREADY STATED THE CASE WAS REOPENED UNDER SECTION 147 AND NOTICE UNDER SECTION 148 WAS ISSUED ON 26.03.2007 WHICH WAS SERVED ON THE ASSESSEE ON 27. 3.2007 I.E. WITHIN TWO YEARS OF THE RELEVANT A.Y. 2004-05 AND NOT BEY OND 4 YEARS FROM THE ABOVE ASSESSMENT YEAR.THEREFORE THE CONDITION THAT NO ACTION SHALL BE TAKEN U/S 147 AFTER THE EXPIRY OF 4 YEARS FROM THE END OF THE RELEVANT ASSESSMENT YEAR UNLESS ANY INCOME CHARGE ABLE TO TAX HAS ESCAPED ASSESSMENT FOR SUCH ASSESSMENT YEAR BY REA SONS OF THE FAILURE ON THE PART OF THE ASSESSEE INTERALIA TO DISCLOSE FULLY AND TRULY ALL MATERIAL FACTS NECESSARY FOR HIS ASSESSMENT FOR TH AT ASSESSMENT YEAR IS NOT APPLICABLE .FURTHER AS PER EXPLANATION1 TO SECTION 147 OF THE ACT PRODUCTION BEFORE THE ASSESSING OFFICER OF ACC OUNT BOOKS OR OTHER EVIDENCE FROM WHICH MATERIAL EVIDENCE COULD WITH D UE DILIGENCE HAVE BEEN DISCOVERED BY THE ASSESSING OFFICER WILL NOT NECESSARILY AMOUNT TO DISCLOSURE WITHIN THE MEANING OF THE ABOVE PROV ISO. 4.1. IN VIEW OF THE ABOVE AND FOR THE DETAILED REA SONS DISCUSSED IN THE ASSESSMENT ORDER DATED 28.12.2007 AND ALSO IN THE ASSESSING OFFICERS ORDER DATED 18.12.2007 (SUPRA) I DO NOT FIND ANY MERIT IN THE OBJECTIONS OF THE AR AGAINST THE REOPENING OF THE ASSESSMENT AND ADDITIONS MADE. CONSEQUENTLY REOPENING OF THE CAS E AND THE ASSESSMENT MADE UNDER SECTION 147 IS HELD VALID AN D ACCORDINGLY ADDITION IS UPHELD. 6. IN SUPPORT OF GROUND NO.1 THE LD. COUNSEL FOR T HE ASSESSEE SUBMITTED THAT ASSESSMENT WAS ORIGINALLY COMPLETED U/S 143(3) OF THE ACT ON 27.09.2006 BY WHICH THE CLAIM OF THE ASSESSEE AS RE GARDS LONG TERM CAPITAL GAIN ON SALE OF SHARES OF M/S. COUNTRY CREDIT CAPIT AL LTD. SOLD THROUGH M/S. SUNRISE STOCK & SERVICES PVT. LTD. WAS ACCEPTED AND THEREFORE THE ACTION OF THE A.O. IN REOPENING THE SAID ASSESSMENT WAS BA SED ON MERE CHANGE OF OPINION. HE FURTHER STATED THAT THE INFORMATION REC EIVED AS A RESULT OF SURVEY ITA NO.1170/CHD/2010 7 AT THE PREMISES OF M/S. SUNRISE STOCK & SERVICES PV T. LTD. WAS NOT INFORMATION CREDIBLE AS THERE WAS NO MATERIAL ON RE CORD TO HOLD THAT M/S. SUNRISE STOCK & SERVICES PVT. LTD. HAD ANYWHERE ST ATED THAT THE IMPUGNED SALE OF SHARES BY THE ASSESSEE THROUGH THEM WAS BOG US. IN VIEW OF THE AFORESAID TWO SUBMISSIONS THE LD. COUNSEL FOR THE ASSESSEE PLEADED THAT THE ACTION OF THE A.O. IN REOPENING THE ASSESSMENT WAS BAD IN LAW AND THEREFORE SHOULD BE QUASHED. IN SUPPORT OF HIS SUBMISSIONS T HE LD. COUNSEL FOR THE ASSESSEE RELIED UPON THE FOLLOWING DECISIONS: I) COMMISSIONER OF INCOME-TAX V. KELVINATOR OF IND IA 320 ITR 561 (SC) . II) INCOME TAX OFFICER VS. LAKHMANI MEWAL DAS 103 ITR 437 (SC). III) COMMISSIONER OF INCOME V. NARINDER NATH PARVE E CHAND 101 ITR 7 (P&H). IV) JAI SINGH V. COMMISSIONER OF INCOME-TAX 136 ITR 89 5 (P&H) V) COMMISSIONER OF INCOME-TAX V. SMT. PARAMJIT KAUR 3 11 ITR 38 (P&H). VI) COMMISSIONER OF INCOME-TAX V. ANUPAM KAPOOR 299 ITR 179 (P&H). 7. AS REGARDS THE MERIT OF THE ACTION OF THE A.O. IN TREATING LONG TERM CAPITAL GAIN CLAIMED BY THE ASSESSEE AS INCOME FRO M UNEXPLAINED SOURCES THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT TRA NSACTIONS ON SALE OF SHARES CARRIED OUT THROUGH M/S. M/S. SUNRISE STOCK & SERVI CES PVT. LTD. WERE GENUINE FOR SEVERAL REASONS NAMELY (I) SALE PROC EEDS OF SHARES WERE DULY CREDITED IN THE BOOKS OF THE ASSESSEE; (2) TRANSAC TIONS ON SALE WAS CONFIRMED BY THE BROKER INASMUCH AS COPY OF ACCOUNT DULY SIGN ED ON BEHALF OF THE ITA NO.1170/CHD/2010 8 BROKER WAS FILED BEFORE THE DEPARTMENTAL AUTHORITIE S; (3) SHARE CERTIFICATES ALONGWITH DEED OF TRANSFER SUPPORTING THE PURCHASE OF SHARES WERE DULY FILED BEFORE THE DEPARTMENTAL AUTHORITIES; (4) THE PURCHA SE OF SHARES STOOD ADMITTED BY THE AO AND THEREFORE HE OUGHT TO HAVE A CCEPTED THE SALE OF SHARES; (5) SALE PROCEEDS WERE RECEIVED BY CHEQUES AND (6) THE BROKER HAS NOT DENIED THE SALE OF SHARES THROUGH HIM. 8. IN REPLY THE LD. DEPARTMENTAL REPRESENTATIVE RE LIED UPON THE FINDINGS RECORDED IN THE ASSESSMENT ORDER AND THE ORDER PASS ED BY THE LD. CIT(A). HE SUBMITTED THAT THE ASSESSEE HAS GIVEN NO EVIDENCE T O ESTABLISH THAT THE TRANSACTION OF SALE OF SHARES THROUGH M/S. SUNRISE STOCK & SERVICES PVT. LTD. WAS GENUINE. ACCORDING TO HIM THE A.O. ON TH E OTHER HAND HAS BROUGHT OUT SUFFICIENT MATERIAL ON RECORD TO ESTABL ISH THAT THE TRANSACTION OF SALE OF SHARES WAS BOGUS AND THEREFORE THE A.O. WA S JUSTIFIED IN TREATING THE ALLEGED SALE PROCEEDS OF THE ASSESSEE AS INCOME FR OM UNEXPLAINED SOURCES INASMUCH AS THE SAID AMOUNT WAS FOUND DULY CREDITED IN THE BOOKS OF THE ASSESSEE. 9. WE HAVE HEARD BOTH THE PARTIES. THE PROCEEDINGS FOR REASSESSMENT WERE INITIATED WITHIN FOUR YEARS FROM THE END OF TH E ASSESSMENT YEAR UNDER APPEAL AND THEREFORE THEIR VALIDITY WOULD NEED TO BE CONSIDERED IN THE LIGHT OF THE MAIN PROVISIONS OF SECTION 147 OF THE ACT AN D NOT IN THE LIGHT OF THE PROVISO TO SECTION 147. ACCORDING TO MAIN PROVISION S OF SECTION 147 AN A.O. ITA NO.1170/CHD/2010 9 IS AUTHORIZED TO REOPEN AN ASSESSMENT IF HE HAS REA SON TO BELIEVE THAT ANY INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT FOR ANY ASSESSMENT YEAR. IN THE PRESENT CASE THE A.O. HAS FORMED THE REQUISITE BELIEF AS A RESULT OF INFORMATION COLLECTED DURING THE COURSE OF SURVEY C ARRIED OUT AT THE PREMISES OF THE BROKER NAMELY M/S. SUNRISE STOCK & SERVICE S PVT. LTD. THROUGH WHICH THE SHARES WERE REPORTEDLY SOLD AND VERIFICAT ION SUBSEQUENTLY CARRIED OUT. PERUSAL OF THE ORIGINAL ASSESSMENT ORDER SHOW S THAT THE A.O. HAD NEITHER EXAMINED NOR RECORDED ANY FINDING THAT THE IMPUGNED SUM CREDITED IN THE BOOKS OF ACCOUNT FOR THE YEAR UNDER APPEAL REPRESEN TED SALE PROCEEDS ON SALE OF SHARES THROUGH THE SAID BROKER. ON THE FACTS OF THE CASE WE ARE SATISFIED THAT THE A.O. HAD DEFINITE AND RELIABLE MATERIAL FO R REOPENING THE ASSESSMENT UNDER THE MAIN PROVISO TO SECTION 147 OF THE ACT. T HE INFORMATION GATHERED BY HIM AS A RESULT OF SURVEY CARRIED OUT AT THE PRE MISES OF M/S. SUNRISE STOCK & SERVICES PVT. LTD. AND VERIFICATION SUBSEQUENTLY CARRIED OUT REVEALED THE BOGUS NATURE OF SHARES TRANSACTION CARRIED OUT BY T HE PARTIES THROUGH THE SAID BROKER. THE INFORMATION SO GATHERED BY THE A.O. CAN NOT BE SAID TO LACK CREDIBILITY. IN VIEW OF THE FORE-GOING DISCUSSIONS WE CONFIRM THE ORDER OF THE LD. CIT(A) THAT THE PROCEEDINGS UNDER THE MAIN PROVISIONS OF SECTION 147 OF THE ACT WERE RIGHTLY INITIATED BY THE A.O. GROUND NO.1 IS DISMISSED. 10. APROPOS GROUND NO.2 THE A.O. HAS BROUGHT SUFFI CIENT MATERIAL ON RECORD TO ESTABLISH THE BOGUS NATURE OF TRANSACTION OF SALE OF SHARES CARRIED ITA NO.1170/CHD/2010 10 OUT BY THE ASSESSEE. THE ASSESSEE HAS NOT BEEN ABLE TO REBUT THE FINDINGS RECORDED BY THE A.O. IN THE ASSESSMENT ORDER AND BY THE LD. CIT(A) IN HIS APPELLATE ORDER. PERUSAL OF THE ASSESSMENT ORDER SH OWS THAT THE A.O. HAS MADE ENQUIRIES FROM VARIOUS SOURCES FOR COMING TO T HE CONCLUSION THAT THE IMPUGNED TRANSACTION OF SALE OF SHARE IS BOGUS. IN THE ABSENCE OF ANY EFFECTIVE REBUTTAL OF THE FINDINGS IN THE ASSESSMEN T ORDER WE ARE UNABLE TO REVERSE THE FINDINGS RECORDED BY THE A.O. AND UPHEL D BY THE CIT(A). GROUND NO.2 IS DISMISSED. 11. GROUND NOS. 3 4 AND 5 ARE GENERAL IN NATURE AN D THEREFORE DO NOT REQUIRE SPECIFIC ADJUDICATION. 12. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH NOVEMBER 2011. SD/- SD/- ( H.L.KARWA) (D.K. SRIVASTAVA) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 28 TH NOVEMBER 2011 /SKR/ COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: SH. VISHAL SHARMA LUDHIANA. 2. THE RESPONDENT: ACIT CIR.1 LUDHIANA. 3. THE CIT(A) 4. THE CIT 5. THE DR INCOME-TAX DEPARTMENT CHANDIGARH.