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2015 (9) TMI 1747 - ITAT MUMBAIReopening of assessment u/s 147 - Gain on sale of shares - Long term capital gains OR income from other sources - HELD THAT:- Since the returns of income filed by the assessees have been processed u/s 143(1) only and since the assessing officer has reopened the assessments on the basis of report received from the Investigation wing of the department, we are of the view that the AO had proper reasons with him for reopening of assessments. Accordingly, we uphold the order of Ld CIT(A) on this issue. Gain on sale of shares - CIT(A) has held that the proof of delivery of shares are not sufficient to prove genuineness of sales, when the purchases were found to be not genuine. We are unable to understand the said reasoning given by the Ld CIT(A). If the tax authorities require any other evidence, apart from the evidences furnished by the assessees, they could have asked the assessees to furnish the same. Instead, they have proceeded to assess the long term capital as income under the head income from other sources. In our view, the said action of the tax authorities is not justified. There should not be any dispute that the delivery of shares could not have been done without purchasing them. Reply given by M/s Interconnected Stock Exchange India cannot be considered to be the sole criteria to suspect the claim of purchase of shares. Barring this, no material is brought on record to suspect the claim of the assessees that they have earned long term capital gains. Accordingly, we are of the view that the Ld CIT(A) was not justified in confirming the additions made by the AO - we direct the AO to accept the claim of impugned Long term capital gain. Appeals filed by the assessees are partly allowed.
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