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2017 (5) TMI 983 - HC - Income TaxIncome from share transactions - AO CIT annd also ITAT held that the assessee had traded in shares and the income was liable to be taxed as business income. - Held that - The authorities found that though the shares were purchased by the assessee at Rs. 5.50 Ps. Per share and Rs. 4/per share from the two companies in the year 2003 the assessee was able to sell the shares just within a years time at Rs. 486.55 Ps and Rs. 485.65 Ps per share. The broker through whom the shares were sold by the assessee did not respond to the assessing officer s letter seeking the names addresses and the bank accounts of the persons that had purchased the shares sold by the assessee. The authorities have recorded a clear finding of fact that the assessee had indulged in a dubious share transaction meant to account for the undisclosed income in the garb of long term capital gain. While so observing the authorities held that the assessee had not tendered cogent evidence to explain as to how the shares in an unknown company worth Rs. 5/had jumped to Rs. 485/in no time. The Income Tax Appellate Tribunal held that the fantastic sale price was not at all possible as there was no economic or financial basis as to how a share worth Rs. 5/of a little known company would jump from Rs. 5/to Rs. 485/. The findings recorded by the authorities are pure findings of facts based on a proper appreciation of the material on record. - Decided against assessee.
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