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2016 (11) TMI 439 - AT - Income TaxReopening of assessment - income from undisclosed source - LTCG - Held that:- It is not in dispute that the assessee has purchased the 9500 shares of Talent Infoway Ltd. for ₹ 14,655/- vide bill dated 04.03.2003 (contract Note placed at page 23 of the paper book) and that the same have been sold for a total consideration amounting to ₹ 7,08,982/- in the year under consideration on 20.03.2004 and 26.03.2004 (details/summary placed at page 47 to 59 of paper book). Once the date and source of purchase of the said shares and the date and sale consideration thereof are not disputed, in our considered view, the transaction is one of LTCG as declared by the assessee in the return of income for A.Y. 2004-05 and therefore the treatment of the same as income from undisclosed source by the authorities below is incorrect. Accordingly on merits of the issue we hold that the gain of ₹ 6,94,327/- on sale of 95000 shares of Talent Infoway Ltd. by the assessee in the year under consideration is to be assessed under the head long term capital gain and we therefore delete the finding of the authorities below that this income be assessed as undisclosed income alongwith the addition of ₹ 8,679/- under section 69C of the Act on account of alleged commission @1.25% thereon. - Decided in favour of assessee
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