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2016 (11) TMI 364 - AT - Income TaxReopening of assessment - income from undisclosed sources - Held that:- We are of the opinion that the AO was justified in issuing the reassessment notice. He had sufficient material, at the time of issuing the notice u/s. 148 of the Act, that certain portion of income had not suffer taxation. We are of the opinion that the order of the FAA does not suffer from any legal infirmity. Therefore, confirming the same we decide the first effective ground of appeal against the assessee. Ingenuine capital gain - addition made as income from undisclosed sources - Held that:- Tax liability can be decided considering the surrounding circumstances and logical inferences based on certain facts. One is required to arrive at the conclusion on the basis of human probability. Human probability cannot be ignored for persons like share-broker not to charge money for the shares sold for months together. Alliance, a company controlled by MC, would not leave the sale price unrealised. It was upon the appellant to discharge the onus which heavily lay on him and he miserably failed. In the case under consideration, it was proved that the apparent is not real. Genuineness of the transaction was examined, not only taking into consideration the documents, but considering the surrounding circumstances were also considered. In our opinion, these aspects were of significance and importance, when the genuineness of the transaction in question was an issue. We find that in the case of Shamim M Bharvani(supra), in almost identical circumstances, the Tribunal has upheld the addition made by the AO. Therefore, we hold that the order of the FAA does not suffer from any legal or factual infirmity. Upholding the same, we decide the second effective ground against the assessee.
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