TMI Blog2006 (8) TMI 266X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... capital gain has been claimed to be exempted under s. 54F of the Act. The learned AO required the assessee to furnish the following informations. 1. No. of shares purchased with distinctive numbers, date and rate as on the date of purchase with proof, complete name and address of the company, date of sale of shares with proof of rate on the date of sale. 2. Proof of making orders to purchase the shares to the Dalal, details of amount remitted to the broker for purchase of shares with source and commission paid along with other expenses incurred thereon. 3. Details of construction and investment made thereon with sources. 4. Copy of capital account, balance sheet etc., for the last three years. 4. In response to the above, the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ares from M/s Maheswari Sons, Delhi. 5. Details of shares purchased in the previous years. 6. Mode of payments received from the share broker on sale of shares. 7. Complete name and address of the persons (who) purchased the shares through the share broker and date of delivery. 6. The learned AO also recorded the statement of the assessee on 27th Dec., 1999. In her statement she stated that any further information with regard to date of receipt of shares and the name and address of the persons who purchased the shares along with date of delivery can be enquired from the broker M/s M.K. Jain Co., Jaipur. The learned AO made independent enquiries from the share brokers M/s J.K. Jain and Co., Jaipur Stock Exchange, Delhi Stock Exchan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The learned CIT(A), on the contrary, deleted the impugned addition referring to details/materials and evidences available on record which according to him clearly suggested that these transactions cannot be held bogus. He has further held that the assessee earned profit of Rs. 4,99,062 as per sale of shares through broker which has been invested in the property. He also held that no addition can be made under s. 69 of the Act in the hands of this assessee. Now the Department is aggrieved. 8. We have heard the rival submissions and have perused the evidence available on record. 9. The assessee has claimed that she sold 9000 shares of Kalyani Commercial Ltd. @ 59.15 per share on 18th July, 1996. After deducting expenses etc. the total lo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shares @ 59.15 per share amounting to Rs. 5,32,350. (vi) Copy of Jaipur Stock Exchange quotation rate dt. 18th July, 1996 indicating the quoted rate of share at Rs. 59.60. (vii) Copy of DD No. 052411 for Rs. 5,31,552 indicating receipt of payment against the sale of the said shares. 10. For making addition under s. 69 of the Act, the Department is required to prove to the hilt that the impugned transactions are bogus. The burden cast on the Department under s. 69C (sic-69) of the Act is very high which is required to be discharged conclusively in this case; there is no such evidence. The assessee has purchased shares from M/s Maheswari Sons. These purchases are evidenced from the contract note. The payment was made by cheque. These ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e to that effect. 11. 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. From the above facts, 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. 12. The learned Authorised Rep ..... X X X X Extracts X X X X X X X X Extracts X X X X
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