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2016 (8) TMI 1201 - AT - Income TaxReopening of assessment - addition u/s. 69A - sale proceeds received through banking channels - Held that:- Sufficiency of the information cannot be questioned but there is some basis for coming to a conclusion that transaction requires examination. But the details are available on record. Moreover, the reopening is after four years from the end of the relevant assessment year as a scrutiny u/s. 143(3) was completed. AO has to record the failure on the part of assessee in furnishing fully and truly all material facts necessary for his assessment. No such finding was provided by the AO in the satisfaction recorded. Since proviso to Section 147 makes it mandatory, thus reopening the assessment after four years from the end of the relevant assessment year, without pointing out the failure on the part of assessee is bad in law The sale of shares was evident not only by the Bank’s statement but also by debit to Demat account maintained by M/s. Karvy Share Broking Pvt. Ltd. Sale proceeds are received in normal course through Banking channel. So, the receipt of money from the broker consequent to the sale cannot be held to be ‘unexplained’. There is no allegation that assessee has paid the consideration in cash and received in cheque in that mode. In the absence of any evidence to the contrary, the sale proceeds cannot be taken as ‘unexplained credits’. With reference to the purchases, the offmarket transactions cannot be doubted. At best AO could have doubted the purchase on that date since cash payments were made, but cannot doubt the purchases as such and transfer to Demat account and sale there on. Therefore, the sale proceeds cannot be brought to tax u/s. 69A. - Decided in favour of assessee.
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