9911796707
TMI Blog2013 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... lter or amend any ground of appeal raised above at the time of hearing." 2. The relevant facts of the case are that the assessee filed a return on 24.10.2006 declaring a loss of Rs.4321/-. The case having been selected for scrutiny under CASS. The assessee was required by the AO to explain and produce its books of accounts etc by way of issuance of notice u/s 143(2) etc. A perusal of the assessment order shows that the assessee is stated to be engaged in the business of electronic, tele-communication, electrical equipments including their modules, sub-assemblies and components. 3. The AO observed that the assessee company had purchased 2,24,510 equity shares of M/s Shri Govind Hotels & Health Resort P. Ltd. having a face value of Rs.10 ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration of Rs.1,12,255/- i.e 50 paise per share in regard to which certificate of the concerned CA was not filed. The AO worked out the book value of M/s Shri Govind Hotels & Health Resort P. Ltd as on 31.03.2006 was worked out in the following manner :- "Paid up Capital Rs.50.37,990/- Number of equity shares Rs.b4,49,040/- Value of each share Rs.11.22(5037990/449040) The books value of 224510/- shares Rs.25,19,002/- Sale consideration paid Rs.1,12,255/- Difference between sale consideration & book value of shares Rs.24,06,747/-" 7. As a result there of addition of Rs.24,06,747/- was made, taking note of the fact that the assessee was provided an opportunity to file the certified value of shares which opportunity was not utiliz ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any doubt that higher price is paid then such allegation is to be supported by tangible evidences and not on mere assumptions or suspicious. Reliance was placed upon the following decisions :- a). The Hon'ble High Court, Delhi in the case of CIT vs Lalit Bhasin Reported in 2007-290-ITR-245 (Del); b). The Hon'ble Income Tax Appellate Tribunal, Mumbai in the case of Rupee Finance & Management P. Ltd. Vs. ACIT Reported in 2009 -120 - ITD - 539(Mum). 8.4. It was further submitted that the burden to prove that the real investment exceeds the investment shown in the books of account of the assessee is on the department and no addition can be made under this section merely on the basis of the fair market value/book value. For the said proposit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e above discussion an after considering all the facts of the case, submissions and the case laws relied upon by the appellant, I hold that the Assessing Officer was not justified in making an addition of Rs.24,06,747/- as undisclosed investment to the income of the appellant and accordingly addition made is hereby deleted." 10. The Sr. DR, Sh. Satpal Singh heavily relying upon the assessment order contended that there is no material on record to show how a particular share whose book value was Rs.10/- was purchased by the assessee at a market value of 50 paise only. It was his submission that opportunity had been given by the AO to the assessee to show why the value of said shares be not taken at Rs.11.22 since the price of the share as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee who has confirmed the transaction at the price and similar notice is stated to have been issued u/s 133(6) to M/s Shri Govind Hotels & Health Resort Pvt. Ltd. who also confirmed the share holding. However no reference in regard to the information sought and received by the AO is found in the assessment order. It is also seen that neither the assessee has cared to address specific reason for the fall in the price of shares nor has the CIT(A) looked into the aspect. It is also seen that general arguments were advanced before the CIT(A) in this regard in sub para 3 of para 5 reproduced hereunder :- "(iii) The Ld. Assessing Officer failed to take into consideration that there may be The various reasons for paying lessor amount by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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