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2010 (10) TMI 762 - AT - Income TaxUnexplained cash credit u/s 68 - Sham transaction - whether the transactions of purchase and sale of shares of M/s Shalimar Agro Product Ltd was a sham transaction and the sale consideration claimed by the assessee would be treated as unexplained cash credit u/s 68 of the Act - Prima facie it appears that the shares were transferred in the name of the assessee on 30.4.2002 and the transaction of purchase took place during the year 2002-03 relevant to the assessment year 2003-04 - However the relevant record was not made available before the AO to verify the veracity of the said letter dated 30.04.2002 of confirmation - Therefore, even if it is presumed that the shares were purchased during the year 2002-03 the actual date of transaction has to be established specifically when the assessee has purchased the shares through the firm in which he is a partner and did not make any payment - The person from whom the shares were purchased was also not produced - Even no entry except showing the transaction in the Final Account has produced to establish the actual date of purchase of shares - Accordingly, remit the issue of capital gain arising out of the purchase and sale of shares of M/s Shalimar Agro Ltd. to the record of AO - The issue of exemption u/s 54F is consequential one, therefore, the same is also requires to be decided as per the outcome of the issue of capital gain. Accordingly, we set aside the order of the CIT(A) and restore this issue to the record of the AO for verification and examination - the appeal of the revenue is allowed for statistical purposes and cross-objection of the aseseee stands dismissed.
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