2010 (10) TMI 97 - HC - Income Tax

Assessee purchased 15000 equity shares of Rs.10/- each - sold such shares in the year under consideration for Rs. 12, 30, 000/- - assessee has disclosed a sum of Rs. 10, 74, 396/- towards capital gain - assessing authority has made addition of the entire sum of Rs. 12, 30, 000/- which was the sale proceed of the sale which also included the principal sum of Rs.1, 55, 604/- - Held that Rs. 1, 55, 604/- was the initial value of the shares and was the investment in the year ending 31.3.2001.It is because of this reason this addition was deleted by the Tribunal - appeal has no merit. It is dismissed

Summary

The High Court of Allahabad ruled in 2010 that the Income Tax Tribunal was correct in deleting the addition of Rs. 1,55,604 for assessment year 2002-03. The Tribunal found that this amount was the initial value of shares purchased by the assessee. The appeal was dismissed.