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2019 (11) TMI 31 - AT - Income TaxComputation of Capital Gains - Disallowance of sum paid for the share certificate of the property - whether the assessee has incurred an expense by way of share certificate obtained from the society namely Om Dharam Jivan Association where the assessee was holding property? - HELD THAT:- Claim of the assessee does not depend upon the confirmation from the third party. The assessee as such has furnished share certificate which is primary document mentioning the payment of ₹ 5000.00. This fact has not been doubted by the authorities below - in the absence of the confirmation from the 3rd party the assessee is not disentitled for claiming the deduction of the impugned expenditure. The certificate issued by the society, Om Dharam Jivan Association, has direct nexuses with the property held by the assessee. This share certificate has no independent value in its self. This share certificate is transferable only along with the property in dispute. Therefore, the cost incurred on such share certificate can be treated as part of the cost of the property - the assessee was holding a property in the society Om Dharam Jivan Association and this fact was also admitted by the AO in his remand report. Therefore in our considered view the share certificate issued by the society, Om Dharam Jivan Association, cannot be doubted being closely connected with the impugned property - direct the AO allow the claim to the assessee Short-term capital gain - Assessee in the year under consideration has sold the shares of L & T - HELD THAT:- AO during the remand proceedings obtained an information from the broker namely Rajvee stock broking Ltd wherein it was confirmed that the assessee has incurred a loss of ₹ 674/- in respect of sale purchase of the shares of L &T. AO in the remand report objected on the admission of the additional evidences on the ground that the case of the assessee does not fall in any of the exception as specified under rule 46A of Income Tax Rule. CIT (A) has observed that the assessee has dealt in 45 scripts but the broker has furnished the details with respect to 6 scripts only. On perusal of the reply of the broker placed on pages 7 and 8 of the paper book we note that the assessee has dealt only in 6 scripts. As such, the learned CIT (A) has not brought any information on record suggesting that the assessee has dealt in 45 scripts. From the above, we conclude that the assessee has incurred losses on the sale purchase of L & T shares amounting to ₹ 674/- and as a whole for all the scripts he has earned a profit of ₹ 2,250/- only. - There cannot be any addition to the total income of the assessee on account of sale of shares of L & T for the reasons as discussed above. Regarding the allegation of the learned CIT (A) about the source of investment in the shares, we note that there was there was no such show cause notice issued to the assessee explaining the source of investment. Therefore there cannot be any addition on account of source of investment without showing a show cause notice to the assessee for his explanation. - Decided in favour of assessee.
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