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2012 (9) TMI 1154 - ITAT MUMBAIIncome on sale and purchase of shares - income assessable under the head income from other sources OR long term capital gain - Held that:- No reason or logic in treating the purchase of 11,500 shares as bogus. The Lower Authorities could have directly verified the transaction from the company itself, whose shares were questioned to be bogus but both the Lower Authorities did not do this exercise. The Remand Report of the AO itself show that the transactions have been treated as genuine subsequently by the AO himself while sending the Remand Report to the CIT(A). We find that the sale transaction of 11,500 shares of M/s. Robinson Impex (India) Ltd (Robinson Worldwide Trade Ltd.,) has not been doubted or questioned by the Lower Authorities. A simple logical question arises if the shares were never purchased, how can they be sold subsequently? After considering all the facts and submissions, we find that both the Lower Authorities have grossly erred in treating the sale consideration as ‘Income from un-disclosed sources’.
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