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2018 (12) TMI 971 - AT - Income TaxAddition u/s 68 - bogus purchase of shares - paper transactions - genuineness of purchase of shares - Held that:- The gain on sale of earlier investment has been reflected by the assessee in his return of income for AY 2004-05 and the same has been accepted by the revenue. In support of genuineness of purchase of impugned shares, the assessee has placed on record contract note, relevant share certificate, statement of demat holding on various dates. The perusal of the share certificate reveal that the said shares were transferred in assessee’s name and the said shares were subsequently converted into demat form which is evidenced by the statement of demat holding as on 31/05/2004. The cost of these shares has been reflected in assessee’s Balance Sheet for the financial year 2003-04. All the aforesaid facts lead us to conclude that the assessee, in fact, acquired the share at some point of time and the said transactions were not mere paper transactions. Nothing on record suggest that any cash transactions got exchanged between the assessee and the share broker - assessee invested the entire gains in purchase of new house property - So far as the huge rise in the sale price of the shares is concerned, it is trite law that the additions could not be made merely on the basis of suspicion, conjectures or surmises. Nothing on record suggest that the assessee, in any manner, collided with his share broker to manipulate the price of the stated shares. - addition deleted - decided in favour of assessee. Eligibility of claim u/s 54F - claim denied only on the premise that the possession of the flat could not be obtained by the assessee within stipulated period of time - Held that:- No ground to deny the deduction particularly when the assessee has acquired certain rights in the property and has appropriated the capital gains towards the same and fulfilled all the other conditions as envisaged by Section 54F. The assessee could not be penalized for delays in the construction which is a common feature of the industry. Therefore, we hold that the assessee was entitled for deduction u/s 54F. AO is directed to allow the same. - decided in favour of assessee. Addition on account of low household expenses are concerned, we concur with the stand of lower authorities, in this regard and therefore, dismiss this ground of assessee’s appeal.
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