MANGLA MODI, MUMBAI v. ITO WD 20(2)(2), MUMBAI

ITA 1706/MUM/2015 | 2006-2007
Pronouncement Date: 30-11-2017 | Result: Dismissed

Appeal Details

RSA Number 170619914 RSA 2015
Assessee PAN AAHPM4596L
Bench Mumbai
Appeal Number ITA 1706/MUM/2015
Duration Of Justice 2 year(s) 8 month(s) 6 day(s)
Appellant MANGLA MODI, MUMBAI
Respondent ITO WD 20(2)(2), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-11-2017
Appeal Filed By Assessee
Tags No record found
Order Result Dismissed
Bench Allotted J
Tribunal Order Date 30-11-2017
Date Of Final Hearing 03-05-2017
Next Hearing Date 03-05-2017
First Hearing Date 03-05-2017
Assessment Year 2006-2007
Appeal Filed On 24-03-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH J MUMBAI BEFORE SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ITA NO. 1706 /MUM/2015 ASSESSMENT YEAR: 2006 - 07 SMT. MANGLA MODI A - 103 HIGHWAY LAND NEW LINK ROAD ANDHERI (W) MUMBAI - 400053 VS. ITO - 20(2)(2) MUMBAI PAN NO. AAHPM4596L APPELLANT RESPONDENT ASSESSEE BY : MR. SATISH R. MODI AR REVENUE BY : MS. ARJU GARODIA DR DATE OF HEARING : 05 /09 /2017 DATE OF PRONOUNCEMENT : 30/11/2017 ORDER PER N.K. PRADHAN A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEAR IS 2006 - 07 . THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISS IONER OF INCOME TAX (APPEALS) - 36 MUMBAI AND ARISES OUT OF THE ASSESSMENT COMPLETED U/S 143(3) R.W.S 147 OF THE INCOME TAX ACT 1961 (THE ACT). 2. THE G ROUNDS OF APPEAL FILED BY THE ASSESSEE READ AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA S E AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE REOPENING OF THE ASSESSMENT U/S 147 OF THE INCOME SMT. MANGLA MODI ITA NO.1706/MUM/2015 2 TAX ACT 1961 WITHOUT ANY VALID REASON RECORDED FOR THE SAME & IGNORING THE SUBMISSION MADE BY THE AR OF THE ASSESSEE COMPANY IN T HIS REGARD. THEREBY SUCH REOPENING ITSELF IS BAD - IN - LAW. 2. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN CONFIRMING THE DECISION OF THE ASSESSING OFFICER PASSING THE ORDER U/S 143(3) R.W.S 147 OF THE INCOME TAX ACT 19 61 BY ADDING A NET INCOME RS.7 68 912/ - AS AN ALLEGED UNDISCLOSED SOURCE OF INCOME EVEN AFTER THE ASSESSEE COMPANY PRODUCING ALL THE RELEVANT RECORDS & DOCUMENT DURING THE COURSE OF ASSESSMENT AND APPELLANT PROCEEDINGS. 3. DURING THE COURSE OF HEARING T HE LD. COUNSEL OF THE ASSESSEE SUBMITS THAT THE APPELLANT WOULD NOT PRESS THE 1 ST GROUND OF APPEAL. THUS THE 1 ST GROUND OF APPEAL IS DISMISSED AS NOT PRESSED. 4. THEN WE ARE LEFT WITH ONLY THE 2 ND GROUND OF APPEAL. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HER RETURN OF INCOME FOR THE AY 2006 - 07 ON 30.11.2006 DECLARING TOTAL INCOME OF RS.9 26 948/ - . THE SAME WAS PROCESSED U/S 143(1) ACCEPTING THE RETURNED INCOME. THEREAFTER THE ASSESSING OFFICER (AO) WAS INFORMED BY THE DEPUTY DIRECTOR OF INCOME TAX (INVESTIGATION) - UNIT - 1(4) MUMBAI VIDE LETTER DATED 07.03.2011 THAT THE REVENUE HAS CONDUCTED A SEARCH AND SEIZURE ACTION U/S 132 IN THE CASE OF M/S MAHASAGAR SECURITI ES PVT. LTD. (IN SHORT MSPL) AND ITS RELATED GROUP COMPANIES. ONE SUCH RELATED GROUP COMPANY IS M/S ALLIANCE INTERMEDIARIES AND NETWORK PVT. LTD. (IN SHORT AI N PL ). DURING THE COURSE OF SEARCH IT WAS FOUND THAT MSPL AND AI N PL WERE ENGAGED IN FRAUDULENT BILLING ACTIVITIES LIKE PROVIDING BOGUS BILLS FOR SPECULATION PROFIT/LOSS SHORT TERM/LONG TERM CAPITAL GAINS/LOSS ETC. BOTH MSPL AND AI N PL WERE RUN BY MR. MUKESH CHOKSI. AS A RESULT OF SEARCH IT WAS DETECTED THAT THE ASSESSEE WAS A BENEFICIARY OF BOGUS SMT. MANGLA MODI ITA NO.1706/MUM/2015 3 T RANSACTIONS WITH AI N PL. THE RELATED AMOUNT WAS RS.5 84 398/ - . IT WAS A BOGUS BACK DATED BILL OBTAINED FROM AI N PL IN RESPECT OF CAPITAL GAINS DECLARED IN THE AY 2006 - 07. THE FINDING WAS THAT THE ENTIRE SALE CONSIDERATION OF RS.9 47 875/ - DERIVED FROM TRANSA CTIONS IN SHARES OF MEDIA MATRIX LTD. (IN SHORT MML) WAS NOTHING BUT INCOME FROM UNDISCLOSED SOURCES BROUGHT INTO THE BOOKS UNDER THE GUISE OF SALE CO NSIDERATION OF SHARES OF MML . DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE AO ASKED THE ASSESSEE TO FURNISH DETA ILS OF SHORT TERM CAPITAL GAINS/LONG TERM CAPITAL GAINS ALONG WITH PU RCHASE AND SALE BILLS OF SHARES. ON PERUSAL OF IT THE AO OBSERVED THAT THE ASSESSEE HAS CLAIMED TO HAVE PURCHASED 32 000 SHARES OF MML THROUGH AI N PL ON 29.03.2005 AND 17 000 SHARES OF MML THROUGH AI N PL ON 01.04.2005 WHICH WERE SHOWN TO HAVE BEEN SOLD IN THE FINANCIAL YEAR 2005 - 06 FOR A CONSIDERATION OF RS.9 47 875/ - . THE ASSESSEE OFFERED SHORT TERM CAPITAL GAINS OF RS.2 73 757/ - TO TAX. AS MENTIONED HEREINBEFORE T HE AO FOUND THAT AS PER THE INFORMATION RECEIVED FROM THE INVESTIGATION WING OF THE INCOME TAX DEPARTMENT AI N PL WAS RUN BY MR. MUKESH CHOKSI AND IT WAS ENGAGED IN FRAUDULENT BILLING ACTIVITIES AND ALSO IN PROVIDING BOGUS BIL LS. THE AO MADE SPECIFIC REFERENCE TO THE STATEMENT RECORDED ON 26.11.2009 BY THE DEPUTY DIRECTOR OF INCOME TAX (INV) UNIT - VIII(2) MUMBAI OF MR. MUKESH CHOKSI. THE AO ALSO OBSERVED THAT AINPL CLAIMED TO BE SUB - BROKERS OF NATIONAL STOCK EXCHANGE (NSE). HOWEVER IT WAS FOUND THAT THE IMPUGNED TRANSACTIONS HAVE NOT TAKEN PLACE AT ALL ON ANY STOCK SMT. MANGLA MODI ITA NO.1706/MUM/2015 4 EXCHANGE. ONLY FICTITIOUS BILLS WERE PREPARED TO SHOW THAT THE TRANSACTIONS WERE TAKING PLACE ON STOCK EXCHANGE. THE AO SOUGHT INFORMATION FROM NSE ABOUT AINPL BY SENDING NOTICE U/S 133(6). THE NSE VIDE LETTER DATED 31.10.2011 INFORM ED THE AO THAT THE REGISTRATION OF AINPL HAD BEEN CANCELLED ON 19.02.2004. THEREFORE HE DREW A FINDING THAT THE TRANSACTIONS OF PURCHASE AND SALE OF SHARES OF M ML THROUGH AINPL WERE SHAM TRANSACTIONS. TH US HE TREATED THE CONSIDERATION OF RS.9 47 875/ - DERIVED FROM SALE OF SHARES OF MML AS INCOME FROM UNDISCLOSED SOURCES. 5. AGGRIEVED BY THE ORDER OF THE AO THE ASSESSEE FILED AN APPEAL BEFORE THE LD. CIT(A). DURING THE COURSE OF APPELLATE PROCEEDINGS THE LD. CIT(A) REMANDED THE MATTER TO THE AO FOR PROVIDING A COPY OF THE STATEMENT RECORDED FROM MR. MUKESH CHOKSI TO THE ASSESSEE AS WELL AS AN OPPORTUNITY TO CROSS - EXAMINE THE SAID PARTY. THE AO VIDE LETTER DATED 28.08.2014 INTIMATED THE LD. CIT(A) THAT THE ASSESSEE HAD BEEN PROVIDED WITH A COPY OF THE STATEMENT RECORDED FROM MR. CHOKSI AS WELL AS WITH THE OPPORTUNITY OF CROSS - EXAMIN ATION . 5.1 THE LD. CIT(A) HAS OBSERVED AT PARA 5.2.2 OF HER ORDER DATED 06.02.2015 THAT IN THE FOLLOWING CASES OF MR. MUKESH CHOKSHI AND HIS ASSOCIATES THE ITAT HAS HELD THAT THEY WERE ENGAGED ONLY IN PROVIDING BOGUS ACCOM MODATION ENTRIES OF SHARE TRANSACTIONS ETC: A) ORDER DATED 28.03.2008 IN ITA NO. 4625/MUM/2005 AND 5000/MUM/2005 FOR THE AY 2002 - 03 IN THE CASE OF M/S GOLD STAR FINVEST PVT. LTD. B) ORDER DATED 29.08.2008 IN THE CASES OF (I) RICHMOND SECURITIES P. LTD. (SUBSEQU ENTLY KNOWN AS MAHASAGAR SECURITIES P. LTD. AND NOW KNOWN AS ALAG SECURITES) IN ITA NO. SMT. MANGLA MODI ITA NO.1706/MUM/2015 5 4624/MUM/2005 FOR AY 2002 - 03 AND M/S ALPHA CHEMIE TRADE AGENCIES PVT. LTD. IN ITA NO. 4999/MUM/2005 FOR THE AY 2002 - 03. C) ORDER DATED 30.05.2008 IN ITA NO. 4912/MUM/200 5 IN THE CASE OF M/S MIHIR AGENCIES PVT. LTD. THE LD. CIT(A) ALSO OBSERVED THAT THE ASSESSEE HAD ONLY FILED COP Y OF BROKER NOTES REGARDING PURCHASE/SALE AND NO BILLS WERE FILED BEFORE THE AO. CONSIDERING THE ABOVE FACTS THE LD. CIT(A) UPHELD THE ADDITION OF RS.9 47 875/ - MADE BY THE AO AS INCOME FROM UNDISCLOSED SOURCES. 6. BEFORE US THE LD. COUNSEL OF THE ASSESSEE FILES A PAPER BOOK (P/B) CONTAINING (I) D ETAILS OF SALE & PURCHASE OF SHARES (II) COPY OF PURCHASE BILLS AND CONTRACT NOTES FOR AY 2006 - 07 (III) COPY OF SALES BILLS AND CONTRACT NOTES FOR AY 2006 - 07 (IV) COPY OF DEMAT STATEMENT WITH HDFC BANK FOR AY 2006 - 07 (V) COPY OF BANK STATEMENT & CHEQUE FOR RECEIPT OF MONEY ON SALE OF SHA RES (VI) COPY OF ASSESSMENT ORDER U/S 143(3) R.W.S. 147 OF THE ACT DATED 30.12.2011 FOR AY 2005 - 06 (VII) COPY OF REMAND REPORT OF THE AO DATED 28.08.2014 FILED BY ITO - 20(2)(2) (VIII) COPY OF CROSS STATEMENT FILED BY ITO - 20(2)(2) (IX) COPY OF LETTER FOR OBJECTION FILED WITH ITO - 20(2)(2) BY AR (X) COPY OF LETTER FROM ITO - 20(25)(2) REJECTING THE OBJECTION FILED BY AR (XI) COPY OF SUBMISSIONS MADE WITH CIT(A) - 31 DATED 14.07.2014 (XII) COPY OF LETTER FILED WITH ITO - 20(2)(2) IN RESPECT OF DENIAL OF CROSS E XAMINATION OF MR. MUKESH CHOKSHI (XIII) COPY OF SUBMISSIONS MADE WITH CIT(A) - 31 DATED 19.09.2014 AND (XIV) COPY OF SUBMISSIONS MADE WITH CIT(A) - 31 DATED 03.02.2015 . SMT. MANGLA MODI ITA NO.1706/MUM/2015 6 6.1 FURTHER THE LD. COUNSEL RELIES ON THE ORDER OF THE ITAT F BENCH MUMBAI IN THE CASE OF SMT. VEENABEN M. CHAUHEN VS. ITO (ITA NO. 2401/MUM/2013) FOR THE AY 2003 - 04. 7. PER CONTRA THE LD. DR SUPPORTS THE ORDER PASSED BY THE LD. CIT(A). ALSO RELIANCE IS PLACED BY HER ON THE ORDER OF THE ITAT D BENCH MUMBAI IN THE CASE OF DISHA N. LALWANI VS. ITO (ITA NO. 6398/MUM/2012) FOR THE AY 2003 - 04. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RELEVANT MATERIALS ON RECORD. THE REASONS FOR OUR DECISIONS ARE GIVEN BELOW. AT THE OUTSET W E REFER TO THE ORDER OF THE TRIBUNAL IN SMT. VEEN A BEN M. CHAUHEN (SUPRA) RELIED ON BY THE LD. COUNSEL OF THE ASSESSEE. IT HAS BEEN HELD THEREIN THAT THE GENERAL STATEMENT MADE BY SHRI MUKESH CHOKSI WAS NEVER CORROBORATED BY ANY MATERIAL EVIDENCE BY THE AO. THIS IS NOT SO IN THE INSTANT CASE . THE NSE IN RES PONSE TO THE NOTICE ISSUED BY THE AO U/S 133(6) HAS INFORMED VIDE LETTER DATED 31.10.2011 THAT THE REGISTRATION OF AINPL WAS CANCELLED ON 19.02.2004. IT AMPLY PROVES THAT THE TRANSACTION OF PURCHASE AND SALE OF SHARES OF MML THROUGH AINPL WERE SHAM TRANSAC TIONS. WE MAY NOW REFER TO THE ORDER OF THE ITAT IN THE CASE OF DISHA N. LALWANI (SUPRA) RELIED ON BY THE LD. DR. IN THAT CASE THE TRIBUNAL HELD THAT MERELY A PAPER WORK WAS CAMOUFLAGED BY THE ASSESSEE WITH THE HEL P OF MR. MUKESH CHOKSI AND HIS ASSOCIATE FIRMS. THE TRIBUNAL ALSO FOUND THAT THE STATEMENT TENDERED BY MR. CHOKSI WAS NEITHER SMT. MANGLA MODI ITA NO.1706/MUM/2015 7 CONTRADICTED NOR PROVED TO BE FALSE. THEREFORE THE ITAT IN THAT CASE DISMISS ED THE APPEAL FILED BY THE ASSESSEE. WE FIND THAT THE ABOVE CASE RELIED ON BY THE LD. DR IS M ORE AKIN TO THE INSTANT CASE. 8.1 WE NOW RETURN TO THE FACTS. IT WOULD BE RELEVANT HERE TO REFER TO THE STATEMENT RECORDED ON 26.11.2009 BY THE DEPUTY DIRECTOR OF INCOME TAX (INV.) UNIT - VIII(2) MUMBAI OF MR. MUKESH CHOKSI. IN RESPONSE TO Q.2 MR. CHOKSI HAS STATED HIS EDUCATIONAL QUALIFICATION AS B.COM FCA. WE PRODUCE BELOW THE PARAGRAPHS PERTINENT TO THE INSTANT APPEAL. Q.3. PLEASE STATE IN DETAIL WHAT YOUR BUSINESS ACTIVITY IS AND WHAT ARE THE CONCERNS IN WHICH YOU ARE DIRECTOR ALONG WITH COMPLETE ADDRESSES AND PAN OF EACH CONCERN. ASN: GENERALLY WHO HAVE CASH IN HAND AND UNACCOUNTED INCOME ASK FOR ENTIRE TO MAKE ACCOMMODATION IN THEIR BOOKS OF ACCOUNTS. I PROVIDE PROFIT AND LOSS ENTRY THROUGH MY VARIOUS COMPANIES SEEKING SUCH ENTRIES. THE FOLLOWING ARE THE NAME OF MY COMPANIES IN WHICH I AM DIRECTOR ALONG WITH JAYESH SAMPAT N.M. MISHRA BUILDING OLD NAGARDAS ROAD ANDHERI (EAST) MUMBAI 400093. ALL MY COMPANIES OPERATE FROM THE SAME PREMISES AT BLOCK - H SHRI SADASHIV SOCIETY 6 TH ROAD SANTAC RUZ (EAST) . 1. M/S MIHIR AGENCIES PVT. LTD. 2. M/S ALLIANCE INTERMEDIATERIES AND NETWORK PRIVATE LTD. 3. M/S ALPHA CHEMIE TRADE AGENCIES PVT. LTD. 4. M/S TALENT INFOWAY LTD. 5. M/S BUNIYAD CHEMICALS LTD. 6. M/S GOLDSTAR FINVEST PVT. LTD. M/S RICHMOND SECURITIES PVT. LTD. (NOR KNOWN AS M/S MAHASAGAR SECURITIES PVT. LTD.) 7. M/S KAYCEE SHARE BROKING PVT. LTD. SMT. MANGLA MODI ITA NO.1706/MUM/2015 8 AT THE MOMENT I DO NOT REMEMBER THE PAN OF ALL THE COMPANIES. THEY ARE AT MY OFFICE AND I SHALL PROVIDE THEM AFTER GETTING IT FROM THE OFFICE. Q.40 IT IS SEEN FR OM THE ABOVE ANSWERS THAT YOU HAVE ISSUED ACCOMMODATION BILLS THROUGH YOUR VARIOUS COMPANIES TO DIFFERENT CLIENTS EITHER DIRECTLY OR THROUGH YOUR INTERMEDIARIES. PLEASE STATE WHETHER YOUR COMPANIES ARE REGISTERED WITH SEBI? ANS: I HAVE MAINLY ISSUED THE B ILLS THROUGH MY FOLLOWING COMPANIES: 1. ALLIANCE INTERMEDIATORIES AND NETWORK PVT. LTD. 2. GOLDSTAR FINVEST PVT. LTD. 3. MAHASAGAR SECURITIES PVT. LTD. (NOW KNOWN AS ALAG SECURITIES PVT. LTD.) ALL THE ABOVE COMPANIES WERE REGISTERED WITH SEBI. HOWEVER IN 2005 - 0 6 GOLDSTAR AND MAHASAGAR WERE BANNED BY SEBI FROM T RADING IN EQUITY SHARES AND ALLIANCE WAS BANNED FROM TRADING IN 2008. Q.41 SINCE YOU HAVE BEEN BANNED FROM TRADING BY SEBI PLEASE EXPLAIN HOW ARE YOU ISSUING SALE AND PURCHASE BILLS IN RESPECT OF TRANSACTIONS CONCERNING EQUITY SHARES FOR VARIOUS SETTLEMENTS WHICH ARE SUBSEQUENT TO THE BAN ORDER IMPOSED BY SEBI. ANS: SEBI HAS SU SPENDED THE REGISTRATION AND ON RECOMMENDATION OF THE STOCK EXCHANGE THE ACTIVITIES OF THE COMPANIES HAS BEEN PUT ON HOLD. ALL OTHER REQUIREMENTS OF RUNNING THE MEMBERSHIP IS IN FORCE. THEREFORE THE BILLS ARE ISSUED. Q.42 CAN YOU STATE THAT THE BILLS ISS UED BY THE ENTITIES MENTIONED IN QUESTION NO. 37 ABOVE WILL HAVE LEGAL SANCTITY WHEN YOU HAVE BEEN BANNED FROM TRADING BY SEBI. ANS: THERE IS NO LEGAL SANCTITY. 8. 2 IT IS PERTINENT TO MENTION HERE THAT THE STATEMENT OF MR. CHOKSI WAS RECORDED U/S 132(4) DURING THE COURSE OF SEARCH. IN RESPECT OF STATEMENTS RECORDED UNDER THE PROVISIONS OF SECTION 132(4) I T HAS BEEN HELD IN BHAGIRATH AGGARWAL VS. ITO (2013) 351 ITR 146 (DEL) BHANUVIJAYSINGH M. VAGHELA VS. ITO (2013) 353 ITR 146 (GUJ); SHOURYA SMT. MANGLA MODI ITA NO.1706/MUM/2015 9 TOWERS P. LTD. V. DEPUTY CIT (2013) 359 ITR 523 (DEL) THAT ONCE THERE WAS A CLEAR ADMISSION VOLUNTARILY MADE ON THE PART OF THE ASSESSEE THAT WOULD CONSTITUTE A GOOD PIECE OF EVIDENCE FOR THE REVENUE. THE IR LORDSHIPS OF THE HONBLE KERALA HIGH COURT IN THE CAS E OF CIT VS. O. ABDUL RAZAK (2013) 350 ITR 71 (KER) HA VE HELD THAT A STATEMENT MADE UNDER OATH DEEMED AND PERMITTED TO BE USED IN EVIDENCE BY EXPRESS STATUTORY PROVISION HAS TO BE TAKEN AS TRUE UNLESS THERE IS CONTRA EVIDENCE TO DISPEL SUCH ASSUMPTION. IN THE INSTANT CASE MR. CHOKSI IN THE STATEMENT RECORDED ON OATH HAS VOLUNTARILY MADE A CLEAR ADMISSION. 8. 3 AS MENTIONED HEREINBEFORE THE AO PROVIDED AN OPPORTUNITY TO THE ASSESSEE TO CROSS - EXAMINE MR. MUKESH CHOKSI AS PER THE DIRECTION OF LD. CIT(A) IN THE REMAND PROCEEDINGS. THE AO FIXED THE DATE FOR CROSS - EXAMINATION ON 21.08.2014. THE AO HAS REPORTED TO THE LD. CIT(A) THAT MR. CHOKSI CONFIRMED DURING THE COURSE OF CROSS - EXAMINATION THE TRANSACTION OF THE ASSESSEE IN THE SHARES OF MML. THE SAME WAS ALSO CONFIRMED TO BE NON - GENUINE TRANSACTION IN NATURE DURING THE PROCEEDINGS. ONE MAY REFER TO QUESTION NO. 8 A ND 9 OF THE STATEMENT DATED 21.08.2014 RECORDED BY THE AO OF THE PROCEEDINGS RELATING TO CROSS - EXAMINATION. 8. 4 TO RECAPITULATE WE FIND THAT (I) MR. MUKESH CHOKSI HAS ADMITTED IN HIS STATEMENT RECORDED BY THE DEPUTY DIRECTOR OF INCOME TAX (INV) UNIT - VII I(2) MUMBAI THAT HE HAS ISSUED ACCOMMODATION BILLS THROUGH HIS COMPANY AINPL (II) IN THE CROSS EXAMINATION DATED 21.08.2014 MR. SMT. MANGLA MODI ITA NO.1706/MUM/2015 10 CHOKSI HAS CONFIRMED THE TRANSACTION WITH THE ASSESSEE IN THE SHARES OF MML AS BOGUS (III) THE NSE VIDE ITS LETTER DATED 31.1 0.2011 AS INTIMATED THE AO THAT THE REGISTRATION OF AINPL HAD BEEN CANCELLED ON 19.02.2004. THE DEDUCTIVE INFERENCES EMERGING OUT OF THE ABOVE BASIC PREMISE IS THAT THE TRANSACTION OF PURCHASE AND SALE OF SHARES OF MML THROUGH AINPL ARE NOTHING BUT SHAM TRANSACTIONS. IN THESE CIRCUMSTANCES THE FACTS SPEAK FOR THEMSELVES AND ARE SUSCEPTIBLE OF BUT ONE INTERPRETATION. TO HOLD OTHERWISE WOULD BE TO EXALT ARTIFICE ABOVE REALITY. IN VIEW OF THE ABOVE REASONS WE UPHOLD THE ORDER OF THE LD. CIT(A). 9. CONS EQUENTLY THE APPEAL BEING DEVOID OF MERIT STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30/11/2017. SD/ - SD/ - ( SAKTIJIT DEY ) (N.K. PRADHAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED: 30/11/2017 RAHUL SHARMA SR. P.S. COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT(A) - 4. CIT 5. DR ITAT MUMBAI 6. GUARD FILE . BY ORDER //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT MUMBAI