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2014 (10) TMI 434 - AT - Income TaxValidity of notice u/s 148 – Validity of the reassessment proceedings - Held that:- As per the reasons recorded by the AO, not only the statement of persons involved in the racket of bogus entry providers were obtained by Investigation Wing of the Department wherein they admitted regarding providing bogus entry but the complete list is available along with the DD no., date and amount etc. and thereafter, the AO has examined this aspect also that these drafts are in fact deposited in the bank account of the assessee – AO also noted that although the drafts were deposited in the bank account in the present year but no income has been declared by the assessee on account of capital gain in respect of these sale of shares for which drafts were deposited – the order of the CIT(A) is upheld – Decided against assessee. Treatment of LTCG from undisclosed sources – Income from other sources – Admission of additional evidence under Rule 46A – Held that:- The transaction of sale of shares was made through different brokers and M/s CMS Securities Ltd. happens to be one of such brokers - The transaction of sale is supported by contract note/sale bill corresponding bank statement and confirmation of account by broker - without giving a finding that M/s CMS Securities Ltd. was still broker inspite of statement of Shri Mukesh Kumar Gupta that the licence of M/s CMS Securities was cancelled in the year 1998, how the CIT(A) can say that the transaction of sale of shares was made through broker - There is no mention in the order of CIT(A) that the distinctive numbers of the shares purchased and sold were made available before him – the shares of M/s B.T. Technet Ltd. were purchased by the assessee in AY 2000-2001 but still he has not mentioned the distinctive numbers of the shares - It is also not mentioned as to whether the shares were standing in the name of the assessee or not. The address of the company is also not available in the order of CIT(A) - It is also not coming out as to whether the delivery of shares was given by the assessee at the time of sale in physical form or through DEMAT account - No enquiry was made from the concerned company as to whether any shares were standing in the name of the assessee during AY 2000-01 to present AY i.e. 2002-03 and whether the shares were transferred in some other name after the date of stated sale and when the shares were so transferred and in whose name - the assessee has not been able to establish the factum of shares sold by the assessee - It is also not coming out that the shares of this company were listed share or not and what was the listed price on the date of purchase and sale - when the assessee is not furnishing any evidence before us also regarding the contract note in respect of stated sale of shares along with the distinctive numbers etc. the order of CIT(A) is not sustainable when such details were not furnished – the order of the CIT(A) is set aside – Decided in favour of revenue.
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