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2006 (8) TMI 266 - AT - Income TaxIncome From Undisclosed Sources - unsubstantiated claim - bogus transaction - HELD THAT:- In the present case, the transaction was between a member and a non-member and therefore, such transactions were not reported in the stock exchange. Further, the credit in the bank account of Shri J.K. Jain is by clearance. Therefore, the allegation of the AO that the amount was deposited in cash has no basis. The assessee has accepted having invested her funds on the advice of her father-in-law. The burden of proving a transaction is always on the person asserting it to be bogus and this burden has to be strictly discharged by adducing legal evidence of a character which would either directly prove the fact of bogusness or establish circumstances unerringly and reasonably raising an inference to that effect. The assessee made payment for the purchase from her own sources through banking channel. The shares were transferred in the name of the assessee and were held by her for more than one year. There is no relationship between the party from whom the assessee purchased the shares and the party to whom these were sold. The shares were delivered after its sale and the assessee did not remain in possession of those shares. Thus, it is established that the assessee acquired the shares to earn profit. There is no evidence except speculation that this profit is not from the sale of shares. The AO has failed to establish his case and to discharge the requisite burden cast on him. We are of the considered opinion that the learned CIT(A) has correctly come to the conclusion that the assessee has dealt in these shares and these transactions cannot be held bogus. We confirm the findings of the learned CIT(A) and confirm the deletion of an addition. This conclusion results in rejecting ground of appeal raised by the Revenue. In the result, the appeal of the Revenue stands dismissed.
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