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2020 (7) TMI 241 - AT - Income TaxAddition u/s 68 on account of Sale of Shares - unexplained cash credit - HELD THAT:- We find that the sale transactions have taken place through an independent broker and the sale proceeds have been received through banking channels. The sale could not take place without making purchases thereof. The purchases were supported by contract notes, holding letter and the payment was through banking channels. The shares were credited in the demat account of the assessee - stated purchase transactions were doubted by Ld.AO in AY 2008-09 and the purchase value of shares of MMTC was added to the income of the assessee as unexplained cash credit. Upon further appeal, Ld. CIT(A) deleted the same by observing that the assessee had discharged the onus by producing the brokers note and AO had not found any reason to doubt the same. Nothing was brought on record to show that these were false or untrue. Matter of purchase of shares has already attained finality in assessee’s favor and hence, the purchase transactions were to be accepted as genuine and carried out in AY 2008- 09 only. When the purchase of shares was to be accepted as genuine then the sale thereof could also not be doubted. Grounds raised, in this regard, stands allowed. Addition on account of Sale of Jewellery - HELD THAT:- Assessee, being a lady, as per the customs, would certainly acquire Jewellery in gifts on the occasion of marriage and on the occasion of the birth of a child. The said fact could be fortified with instruction No.1916 dated 11/05/1994 issued by CBDT which recognizes a fact that a married lady of reputed family could be expected to own 500 grams of ornaments and therefore the same need not be seized. This is coupled with the fact that the sale consideration has been received by the assessee through banking channels in subsequent financial years. Nothing on record would show that the said receipts have flown back to the purchaser of Jewellery. The assessee has placed on record financial statements of the three purchasers along with copies of their computation of income & Income Tax Returns. In their respective Balance Sheets, these purchase transactions have been recognized by the three purchasers and confirmation of account has also been placed on record. Therefore, claim of the assessee was to be accepted. Therefore, we are inclined to delete the impugned additions and allow grounds raised by the assessee, in this regard.
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