9911796707
TMI Blog2011 (4) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the file. The said copies are taken on record and the file of the appeal is treated as having been reconstructed. 2. This appeal under section 260A of the Income-tax Act, 1961 (for short "the Act") has been filed by the assessee against the order dated 28-11-2006, passed by the Income-tax Appellate Tribunal Chandigarh Bench 'A', Chandigarh (in short "the Tribunal") in ITA No. 731/Chandi/2004, relating to the assessment year 1998-99. 3. The appeal was admitted for determination of the following substantial questions of law by this Court : "(i) Whether in the facts and circumstances of the case, the reassessment proceedings could be carried when the notice issued under section 148 of the Act is found to be incorrect? &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the income. 5. The Commissioner of Income-tax (Appeals) in short "the CIT (A)", by order dated 23-3-2004 deleted the additions made by the Assessing Officer whereas in the appeal taken by the Revenue, the Tribunal vide order under challenge herein reversed the order of the CIT(A) and upheld the additions so made by the Assessing Officer. 6. We have heard learned counsel for the parties and have perused the record. 7. Learned counsel for the assessee submitted that there was no justification for the Tribunal not to accept the explanation of the assessee. The transaction entered into by the assessee was a genuine transaction and sale and purchase of shares was actually carried out and the assessee had earned capital gains thereon. The Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... harma & Co. and the formal confirmation from the broker. The Assessing Officer had recorded the statement of Shri S.K. Sharma of M/s. S.K. Sharma & Co., and demanded details about the sale of shares. Though M/s. S.K. Sharma admitted to have purchased the shares of M/s. Ankur International Limited from the assessee, yet it was found by the Assessing Officer that he failed to produce the books of account and other relevant documents. It was also found by the Assessing Officer that the alleged sale of shares had not taken place through any stock exchange. On scrutiny of the books of account of M/s. S.K. Sharma & Co., it was found by the Assessing Officer that there were cash deposits in their bank account preceding the issue of cheques in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Ludhiana Stock Exchange beyond 17-7-1997. As on 17-7-1997, the said shares were quoted at Rs. 17 per share. Thereafter the shares were not quoted at all. As per Ludhiana Stock Exchange records, there was no trading of shares of M/s. Ankur International Limited after 17-7-1997. This is one aspect of the matter. The other aspect of the matter is that the assessee had furnished evidence to establish that the shares of M/s. Ankur International Limited had been sold by one Shri Rajinder Bansal to Shri Anurag Rastogi and latter sold the same to Shri Sunil Bakiwal on the same date who in turn again sold back the same shares to the original allottee Shri Rajinder Bansal on the same date i.e., 9-2-1998. The Assessing Officer accordingly held that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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