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2015 (7) TMI 604 - AT - Income TaxValidity of proceedings u/s. 158BD - Held that:- The provisions of section 158BD can be invoked where the Assessing Officer is satisfied that any undisclosed income of a person other than one against whom search was conducted is reflected in the books of accounts/documents of the person searched. We find that after recording of satisfaction notice u/s. 158BD was issued to the assessees by the Assessing Officer on 29-09-2004. The ld. AR of the assessees has contended that the entire income has been accounted for and is reflected in the balance sheet of the assessees. However, no documentary evidence has been placed on record in support of such contentions. Further, the ld. AR has not been able to show that the assessees have disclosed Capital Gains on sale of shares in any of the impugned assessment years. Thus, we are not inclined to accept the contentions of the assessees that invoking of jurisdiction u/s. 158BD is unjustified. Accordingly, we reject the same. Computation of LTCG - Consideration for transfer of shares - CIT(A) adopting sale consideration for transfer of 400 shares at ₹ 22,50,000/- as against ₹ 5,00,000/- - contentions of the assessees is that they have received only ₹ 10,00,000/- and the remaining amount of ₹ 35,00,000/- has not been received by the assessees from Shri Prakash Laddha till date - Held that:- We do not concur with the submissions of the assessees that the consideration of ₹ 45,00,000/- is towards transfer of shares and repayment of cost of improvement of site. The assessees till date have not brought on record any document to show the terms and conditions and the allocation of consideration for transfer of company from assessees to Laddha Group. In the absence of any documentary evidence the only inevitable inference that can be drawn is that ₹ 45,00,000/- is sale consideration for transfer of shares alone. To treat ₹ 17,49,617/- as part of sale consideration is nothing but an attempt to reduce the capital gains arising on sale of shares. A perusal of the above letter of Shri Prakash P. Laddha shows that an amount of ₹ 40,000/- was allegedly paid to Shri Janardan R. Kapse against purchase of shares. The claim made by the assessee and the statement given by Shri Prakash P. Laddha are not congruent. Shri Prakash P. Laddha during the course of assessment further admitted that payment to the extent of ₹ 17,89,000/- in cash and ₹ 40,000/- by cheque out of the total of ₹ 41,50,000/- as appearing in seized documents. Thus, in view of seized documents and the admission of Shri Prakash P. Laddha regarding the payment of consideration and also the fact that share of M/s. Vastukrupa Construction (India) Pvt. Ltd. have been transferred in the name of Shri Prakash P. Laddha and his wife, we are of the considered opinion that the entire sale consideration has to be taxed in the hands of the assessees as Long Term Capital Gain. - Decided against assessee.
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