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2016 (8) TMI 1477 - AT - Income TaxAddition u/s 68 - accommodation entries receipt - HELD THAT:- CIT(Appeals) has passed an elaborate and well reasoned order. The AO has clearly brought on record the assessee’s transactions which are nothing but accommodation entries through Hawala operators. This has been done with a motive to convert the unaccounted money into white funds. The assessee has not at all been able to adduce cogent evidences in this regard. There is no economic or financial justification for the sale price of these shares. The so called purchaser of these shares has not been identified despite efforts of the AO. The broker company through which shares were sold did not respond to queries in this regard. Hence the fantastic sale price realisation is not at all humanly probably, as there is no economic or financial basis, that a share of little known company would jump from ₹ 5/- to 485/-, In these circumstances, no infirmity in the orders of the authorities below. Accordingly affirm the same and decide the issue against the assessee. Deduction u/s 54F - HELD THAT:- AO observed that on perusal of the sale deed it was found that the assessee has made payment of ₹ 4,30,001/- on the date of Agreement i.e. 22.05.2002 which is before the sale of the shares and the final payment is made on 25.10.2002, which is after 2 ½ months of sale proceeds received. The assessee deposited the alleged sale price of the shares in his regular account for earning income therefrom and not deposited the same in the Specific Account for the Capital Gains and utilised the same for other purposes. Thus there is no proof with the assessee to show that the same amount of sale proceeds were utilised for the purchase of house property. On this ground also, the assessee’s claim cannot be allowed. The appellant has grossly failed to substantiate his claim for grant of deduction u/s 54F of the Act. The appellant has not filed any sort of document in support of his claim for investment in a residential house. The appellant has also failed to substantiate the transaction of purchase and sale of the shares without any documentary evidences. therefore, decline to interfere with the order of the AO. This ground is dismissed accordingly, both on merits and legality.
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