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2010 (6) TMI 769 - AT - Income TaxDeduction u/s 54F - Deduction denied as capital gains is bogus - HELD THAT:- Considering the facts of the case, it is to be concluded that the addition has been made by the A.O. without any basis and merely on conjectures and surmises. We also noticed that the learned CIT(A), while confirming the case of the A.O., has referred to certain details not furnished such as purchase and sale of M/s DSQ Software which was squared of against the purchase of the shares of M/s Bolton Properties Ltd. and also the fact that the ultimate buyers of the shares were operating from the same broker's address. These inferences relied upon by the learned CIT(A) in the light of the documentary evidence are not sufficient to come to the conclusion that these transactions of purchase and sale of shares by the assessee resulting in capital gains is bogus. Not only that the company also transferred the shares in the name of the assessee by issuance of jumbo certificate and ownership of the shares were also recorded in the form of demat account maintained in Bank of Baroda. The member client agreement was also furnished which indicate that the assessee was registered with the broker as per the norms. Under the facts and circumstances of the case, we are of the view that the capital gain as declared by the assessee is to be accepted and the addition made by the A.O. deserves to be deleted. Consequent to that the assessee is eligible for deduction under section 54F. The A.O. is directed to do so. Accordingly the respective grounds are considered allowed. Addition u/s 69C for the low withdrawals - In the absence of any information on record we deem it fit to restore the issue back to the file of the A.O. to give one more opportunity to the assessee to furnish the necessary details in support of the expenditure. In the absence of any details from the assessee, the A.O. is free to estimate the expenditure keeping in mind the capital account of the assessee in firms and also husband's capital account. With these directions, the issue is restored back to the file of the A.O. Ground is allowed. Appeal partly allowed.
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