TMI Blog2014 (10) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... tations in a Gujarati Diary was of no help to the assessee - the assessee had not done any share business before financial year 2003-04 and after financial year 2004-05 in which he had earned capital gains of ₹ 51 lacs - the assessee had failed to prove the genuineness of the transaction of sale and purchase of shares - once the transaction of purchase and sale was found to be bogus then the sale proceeds had to be added as income of the assessee u/s 68 of the Act because the money received on the basis of bogus transaction had been credited by the assessee in the books of account which remained unexplained – thus, the order of the Tribunal is upheld – Decided against assessee. - ITA No. 196 of 2014 (O&M) - - - Dated:- 16-9-2014 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apprehensions could be based? 3. Put shortly, the facts necessary for adjudication as narrated in the appeal are that the during the assessment year in question i.e. 2005-06, the assessee filed his return of income on 31.10.2005 declaring an income of ₹ 58,32,924/- which included long term capital gains on trading of shares amounting to ₹ 47,65,180/- and on this amount also paid long term capital gain at the rate of 10%. The Assessing Officer vide assessment order dated 7.12.2007 (Annexure A- 1) after terming the sale transaction of the shares as bogus, made an addition of ₹ 51,87,680/-. The Assessing Officer had even treated the cost of shares as unexplained cash credit under Section 68 of the Act. Feeling aggrieved b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n unexplained money in the garb of sale of shares and has avoided giving his due taxes. According to Section 68 if any sum is found credited in the books of assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not in the opinion of the AO, satisfactory, the sum so credited may be charged to income tax as income of the assessee of that previous year. In this case also the assessee could not explain the receipt of alleged share profits credited in his bank accounts. The explanation given by the assessee is not at all satisfactory as can be seen from the various enquiries mentioned above. It is proved beyond doubt that the share transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s were given to the assessee on receipt of cash payment. It was recorded that since the assessee had only filed copy of sale and purchase bill and showed inability to produce the broker, the Assessing Officer was right in conducting the enquiries on his own. Further, the bogus capital gains have been generated by the assessee and, therefore, the quotations in a Gujarati Diary was of no help to the assessee. From a perusal of questions and answers, it appeared that the assessee had not done any share business before financial year 2003-04 and after financial year 2004-05 in which he had earned capital gains of ₹ 51 lacs. On appreciation of the evidence, the Tribunal held that the assessee had failed to prove the genuineness of the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X
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