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2016 (10) TMI 1125 - AT - Income TaxValidity of reopening of assessment - assessment of long term capital gain as his undisclosed income u/s 68 - Held that:- We notice that the assessing officer has disbelieved the claim of Long term capital gains only on the basis of the statement given by the broker. We notice that the assessee has furnished the details of purchase of shares, copies of share certificates, the details of sale of shares and the details of receipt of money towards the sale consideration. Further it is stated that the sale of shares has taken place through Ahmedabad Stock Exchange. We notice that the above said documents and the claim of the assessee were not examined at all by the AO. We further notice that the assessee has filed return of income showing the purchases in the year relevant to AY 2003-04 and the sales in the return of income relating to AY 2004-05. We further notice that the assessee has sought for the copy of statement claimed to have been given by Shri Mukesh Choksi with regard to the transactions carried on by his group of companies. However, the same has not been provided to the assessee. According to the Ld A.R, the assessing officer has not shown that the transactions of the assessee have been claimed to be accommodation entries by Shri Mukesh Choksi. Accordingly it was submitted that the tax authorities should not have taken adverse view of the matter on the basis of generalized statement. We notice that the tax authorities have placed full reliance on the statement given by Shri Mukesh Choksi and it was not shown that the transactions entered with the assessee were claimed to be bogus. Further the tax authorities have not examined the documents furnished by the assessee and did not carry out verification with third parties. We have also noticed that the statement of Shri Mukesh Choksi has been relied upon without confronting the same with the assessee. Under these set of facts, we are of the view that there is no justification in disbelieving the claim of the assessee. - Decided in favour of assessee.
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