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2019 (11) TMI 547 - AT - Income TaxGain on sale of shares - capital gain - 3rd round of litigation before us - direction of ITAT, the AO was to verify whether the assessee has sold the shares of TOL in the assessment year under consideration or in the AY 2007- 08 - HELD THAT:- Assessee has not filed the copy of the bank statement for the AY 2007-08 depicting the purchase & sale of shares of TOL as desired by the Authorities below. However, none of the authorities below has pointed out any defect in the submission filed by the assessee in the paper book listed above. Besides the above, we also note that there was single deposit in the bank account of the assessee for ₹ 3,86,192.00 in the AY 2001-02 representing the sale proceeds of shares but the same was reflected twice as the impugned cheque bearing no. 765816 was dishonored in the first time as evident from the copy of the bank statement placed on page 29 of the PB. However, the AO has wrongly considered the deposits of cheque twice against the sale of shares which is contrary to the facts available on record. This fact can be verified from the bank statement placed in the paper book. Thus we hold that the authorities below have made the addition for the sale of shares of TOL on wrong assumption of facts. On a question to the ld. DR about the source of information for the sale of shares of TOL in the AY 2001- 02 (under consideration), he failed to bring anything on record contrary to the arguments advanced by the ld. AR for the assessee. We also find that the authorities below were in possession of the information about the brokers involved in the sale and purchase of shares but none of them has taken any confirmation from them. There was no ambiguity in the direction of the ITAT as discussed above to verify the purchase and sale of shares of TOL but the AO in his assessment order has held that the assessee has not declared the sale of shares of M/s ATN International Ltd. resulting bogus long-term capital gain of 3,64,422.00 though there was no such direction in the order of the ITAT. Therefore, we are of the view that the authorities below have exceeded the direction issued by the ITAT which is unwanted. We are not convinced with the findings of the Ld. CIT (A) and accordingly direct the AO to delete the addition made by him. Hence the ground of appeal of the assessee is allowed.
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