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2009 (8) TMI 804 - ITAT AGRACapital gain Vs Other sources - Exemption u/s 54F - Reopening u/s 148- treatment of income from sale of shares as Income from other sources Accommodation entries - money laundering - bona fide reasons which has led to escapement of income within the provisions of s. 147 of the IT Act, 1961. - Held that:- The only reason to make the addition is that confirmation from the share brokers could not be filed by the assessee and summons issued to the said persons were not served and returned unserved and the names and addresses of the buyer to whom the ultimately shares were sold through the broker were not known to the assessee. The assessee was not in a position to compel the share broker for confirming the transaction, she being neither a director nor having large scale dealings with the brokers over the years so as to show that she was personally in a position to compel them on account of the magnitude of transaction done through them. It was her father who knew the brokers and she acted on his advice and had no contact thereafter. The reasoning that summons issued to the parties came back unserved cannot by itself be held against the assessee. - The Department has thus proceeded entirely on suspicion and surmises if seen in the light of the orders of the Tribunal. The claim of the assessee in regard to the first issue is to be allowed. Exemption u/s 54F - residential premises or commercial premises - even if ultimate buyer of the shares is not known, the claim for s. 54F cannot be denied - held that:- The assessee, has put no sufficient material on record and had not demonstrated that house was used as a residence of the assessee. It may be a well furnished house with bedrooms, kitchen and toilets but that is not sufficient because to claim deduction it must be shown to have used for residence. - Assessee has also not produced ration card, voters' identification card or other evidence for residence. There is no such current scenario that residential premises in a commercial premises has been or becoming a general trend.
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