COMMISSIONER OF INCOME TAX Vs. ATUL JAIN

JUDGEMENT

(1.) The Revenue is aggrieved by an order dated 2nd March, 2006 passed by the Income Tax Appellate Tribunal, Special Bench SMC, New Delhi in ITA No.4824- 25/Del/2004 relevant for the assessment year 1997-98.

(2.) The assessees had purchased shares of M/s Globe Commercials Ltd. through M/s Maheshwari Sons, stock and share broker. Subsequently, these shares were sold at a much higher value through another broker Satish Kumar Goel, proprietor of R.K. Aggarwal and Co. The assessees had disclosed long term capital gains arising from the transaction.

(3.) It appears that some intra-departmental information was received by the Assessing Officer to the effect that the assessees had taken a bogus entry of long term capital gain after paying the equivalent amount in cash together with premium for the accommodation entry to Satish Kumar Goel. This information was received from the Deputy Director of Income Tax (Investigation), Gurgaon. Based on the information received, the Assessing Officer took action to issue a notice under Section 148 of the Income Tax Act, 1961 (the Act) to the assessees.