Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 677 - AT - Income TaxAddition of unexplained income under section 69A of the Income Tax Act, 1961 - Purchase & sale of shares - De-materialised shares - Stock exchange denied any such transaction on exchange platform - Held that:- The foregoing discussions would show that the tax authorities have proceeded to assess the amount of ₹ 1.00 crores on suspicion, conjectures and surmises. Further they have not disproved the various documents furnished by the assessee in support of purchase and sale of shares by conducting specific enquiries with the brokers who had purchased and sold the shares on behalf of the assessee. The strong fact relating to the dematerialization of shares was not disproved by the tax authorities. The fact of purchase of shares was disclosed by the assessee in its return of income filed for AY 2002-03. The source of purchase was the speculation profit arising on sale of certain shares and the said speculation profit was also assessed in AY 2002-03. The assessee has dematerialized the shares through M/s RBK Share Broking Ltd, one of the depository participants of M/s CDSL. Without availability of physical shares, one cannot set them for de-materialisation. These factual aspects have not been disproved by the tax authorities. The shares were sold in the off-market and hence the transaction of sales was not routed through the stock exchange. The shares were held in the name of the partners on behalf the assessee firm and hence, naturally, the name of assessee firm would not find place in the transactions. Under these set of facts, the letters issued by the Stock Exchange could not be relied upon by the tax authorities. The case law relied upon by the Ld CIT(A) were also not found to be supporting the case of the tax authorities. We have also noticed that the assessing officer has assessed the Long term capital gain arising on sale of impugned shares. Under these set of facts, we are of the view that the tax authorities are not justified in suspecting the claim of purchase and sale of shares and also assessing the amount of ₹ 1.00 crore as undisclosed income of the assessee. Accordingly, we set aside the order of Ld CIT(A) on this issue and direct the assessing officer to delete the assessment of ₹ 1.00 crore made in the hands of the assessee. - Decided in favour of assessee.
|