Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (5) TMI 16 - AT - Income TaxEstimation of income - LTCG - purchase of shares - Held that:- Since we have held that the shares have been purchased by the assessee on 27.04.2005 i.e., on the date on which the shares were transferred to his Demat account consequently assessment is required to be made in the following manner:- (a) The difference between the market value of shares as on 27.04.2005 and the cash balance available with the assessee as on that date is required to be assessed as unexplained investment. It is pertinent to note that the assessee should be in a position to prove the availability of cash balance as on that date to the satisfaction of the assessing officer. We may also add that, if the assessee does not maintain regular cash book and the explanation offered by him was not satisfactory, then the entire amount of market value of shares is required to be assessed as unexplained investment. (b) The difference between the sale consideration of shares and the market value of shares as on 27.04.2005 is required to be assessed as short term capital gain. (c) The AO has estimated the commission expenses @ 5% for procuring long term capital gains. Since we have held that the assessee could not prove the claim of purchase of shares in April, 2004, we are of the view that the Ld CIT(A) was justified in confirming the assessment of commission expenses. Claim of agricultural income - Held that:- Since the assessee has furnished documents with regard to the ownership of lands and confirmation letters supporting the sales, we are of the view that the claim of agricultural income cannot be rejected altogether. At the same time, we notice that the assessee has not furnished the details relating to agricultural operations. Under these set of facts, we are of the view that the agricultural income is required to be estimated in order to put this issue at rest. Accordingly, we modify the order of Ld CIT(A) on this issue and direct the AO to restrict the disallowance to 40% of the agricultural income reported by the assessee and accept the agricultural income to the extent of 60% of the amount reported by the assessee.
|