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2008 (3) TMI 689 - AT - Income TaxLong-term capital gain - sale proceeds of shares - Claim Exemption u/s 54F - Income from undisclosed sources - Genuine transaction or not - HELD THAT:- The evidences submitted by the assessee are not proved to be bogus, false or incorrect. Assessee has no other source of income except rental income and share from partnership firm. The Revenue too has not brought on record any source from which the assessee could have earned this alleged undisclosed income and there is no material on record to establish or even suggest that cash actually flowed from the assessee to purchase the demand drafts as alleged by the Revenue. On the other hand the broker has categorically confirmed that he made the payment of sale proceeds. After lifting the veil Department's enquiry should have gone to establish logically, from the records, that sale consideration was actually the money of the assessee converted under the guise of share transaction. Similarly, here there was no tax planning for which any colourable device or collusion could have been used. It was a simple transaction of sale of shares at the most opportune time which is perfectly in tune with the human nature. As a matter of fact the entire approach and findings of the lower authorities are based on suspicion, surmises and conjectures and badly affected by various other cases, which have no application to the assessee's case. In our view, the action of the Revenue authorities in concluding that the sale value of shares is income of the assessee from undisclosed sources cannot be accepted. Thus, the income declared by the assessee under the head long-term capital gain is directed to be assessed as such. In the result, appeal by the assessee is allowed.
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