Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2005 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (8) TMI 298 - ITAT CHANDIGARH-AChargeability - Additions to Income - bogus gain on sale and purchase of shares - HELD THAT:- The learned CIT(A) only got swayed by the issuance of notice by the AO u/s 131 to both the brokers from whom shares were purchased and sold and came to the conclusion that share transactions were genuine overlooking the material gathered by the AO from the statements recorded of broker M/s S.K. Sharma & Co. and the other facts and circumstances that volume of transactions of Jaipur Stock Exchange is only 600 shares and 1000 shares. Payments have been received from the brokers only in instalments over a period of 6-7 months. It is true that when transactions are through cheques, it looks like real transaction but authorities are permitted to look behind the transactions and find out the motive behind transactions. Generally, it is expected that apparent is real but it is not sacrosanct. If facts and circumstances so warrant that it does not accord with the test of human probabilities, transactions have been held to be non-genuine. It is highly improbable that share price of a worthless company can go from Rs. 3 to Rs. 55 in a short span of time, Mere payment by cheque and receipt by cheque does not render a transaction genuine. Capital gain tax was created to operate in a real world and not that of make belief. Facts of the case only lead to the inference that these transactions are not genuine and make believe only to oft set the loss incurred on the sale of jewellery declared under VDIS. Thus, we, are of the considered view that the CIT(A) was not justified in deleting the impugned addition. We, accordingly set aside the order of the CIT(A) and restore that of the AO. In the result, the appeal of the Revenue is allowed.
|