TMI Blog2013 (10) TMI 837X X X X Extracts X X X X X X X X Extracts X X X X ..... ary materials and convincingly show that the value of the shares, as had been reflected in her annual return of income, had gone as high as the assessee-respondent had claimed. The onus, which so rested on the assessee-respondent, was never discharged by the assessee- respondent. This aspect appears to have escaped the notice of the learned Tribunal - Impugned order suffers from non-application of mind and, therefore, the same needs to be set aside and the appeal, which had been filed before the learned Tribunal, needs to be remanded for being decided in accordance with law. - ITA No. 33 of 2010 - - - Dated:- 12-6-2013 - I A Ansari And Dr Mrs Indira Shah, JJ. For the Appellant : S Sarma, Standing Counsel for Income-tax For th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long term capital gain of Rs. 18,73,210/- by selling shares of two companies, namely, Ocean Entrade Limited and United Impex Limited. The purchases and sales of the shares, in question, as reflected in the return of income, may be summarised as follows: Sl Name of the Company Sale Particulars Purchase Particulars Share Date S. Price Date Price 1. Ocean Entrade Ltd. 2200 04.07.02 261,360 26.03.01 4.510 2. Ocean Entrade Ltd. 3200 02.08.02 379,840 26.03.01 6,560 3. Ocean Entrade Ltd. 3600 08.08.02 430,560 26.03.01 7,380 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer had concluded that since the shares had been purchased in cash and had not been routed through any Stock Exchange, the demand of Demat account or bank statement, etc., was untenable. However, the appellate authority noted, in its appellate order, dated 21.01.2008, that the profits, shown in the case of both the companies, whose shares had been purchased and sold by the assessee, were either negligible or ended in loss, and, therefore, it was illogical to take the view that the value of the shares of the companies concerned would jump to more than 57 times in a brief span of 16 months. The Appellate Authority also noted, in its order, dated 21.01.2008, that the said companies were not financially sound and, hence, their per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal, before us. 10. We have heard Mr. S. Sarma, learned Standing counsel, Income Tax, appearing for the appellant, and Mr. O. P. Bhati, learned counsel, appearing for the assessee-respondent. 11. While considering the present appeal, what needs to be noted is that when a query had been made by the Assessing Officer directing the assessee-respondent to furnish necessary materials to show that the return of income, which the assessee-respondent had filed, was correct, justified and tenable in law, the onus rested on the assessee-respondent to produce necessary materials and convincingly show that the value of the shares, as had been reflected in her annual return of income, had gone as high as the assessee-respondent had claimed. The onus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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