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2013 (12) TMI 958 - ITAT HYDERABADLong term capital gain on sale of shares – Assessee contended that in the case of the assessee since all the MOU were cancelled and the sale consideration kept in the Escrow account had been appropriated by DRDL, therefore no transfer can be said to have taken place. - Held that:- The transfer of shares is complete in all respects from the assessee to the DRDL as there is extinguishment of rights of the assessee over the concerned shares - The conduct of the parties in executing the transfer forms by the sellers in favour of the buyer recording of transfers in the share certificates and books of accounts of the respective companies and the annual return filed before ROC clearly demonstrate that the intention of the assessee was to transfer the shares to the buyer DRDL for a consideration and the transaction is complete on delivery of share certificates and executing the instrument of transfer - In pursuance to the transfer of shares, control and management of all 13 companies were handed over to the buyer DRDL - Not only there are entries in the books of accounts of the transferor companies and transferee company but all other formalities under the provisions of the companies Act, 1956 like execution of instrument of transfer, recording of transfer in share certificates handing over the share certificates, books of accounts, all other records and documents as well as control and management of the companies have been carried out which proves that there is transfer of shares to the buyer DRDL - There was an extinguishment of assessee's rights over the shares – Decided against assessee. Advance from several persons – Held that:- The assessee failed to explain the deposits by furnishing the names and addresses, amounts received etc., and even confirmation letters were also not produced by the assessee - Before the CIT (A), the assessee submitted that the sum was refund of advance previously made and has been duly disclosed in the books of accounts – The assessee failed to substantiate his claim – The issue was restored for fresh adjudication. Unsecured loan taken – Held that:- The assessee has failed to furnish any evidence to prove the source of creditor's past savings – The assessee has not submitted PAN and Bank statement of the creditor before the lower authorities - The assessee has submitted the PAN and bank statement of loan creditor before the CIT (A) - The CIT (A) has confirmed the addition without considering the evidences submitted by the assessee – The issue was remitted back to the file of the Assessing Officer for fresh adjudication after taking into account the evidences produced by the assessee.
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