TMI Blog2010 (4) TMI 1029X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee was unable to provide the details of the uncle along with his source of income and amount of expenditure incurred by him for the marriage ceremony of the assessee. Under these circumstances, it cannot be said that the assessee had not incurred any expenditure. Therefore, the addition of ₹ 4 lakhs appears to be on the higher side especially when the Department has no information as to the number of persons who attended the function, the place of function, lavishness of the expenditure, etc. We, therefore, deem it proper to restrict the disallowance to ₹ 2 lakhs which, in our opinion, will be reasonable. Grounds of appeal by the assessee is partly allowed. Deduction u/s 54F - amount received on sale of shares from M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Mr. Somagyan Pal ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 28th February, 2007 of the CIT(A)-XI, Mumbai relating to assessment year 2002-03. 2. Grounds of appeal No. 1 and 5 by the assessee being general in nature are dismissed. Grounds of appeal No. 4 was not pressed by the learned counsel for the assessee for which the learned DR has no objection. Accordingly the same is also dismissed. 3. In grounds of appeal No. 2 the assessee has challenged the order of the CIT(A) in sustaining the addition of ₹ 4 lakhs out of ₹ 5 lakhs added by the Assessing Officer as unexplained/unaccounted expenditure on marriage. 4. Facts of the case, in brief, are that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... round that such expenditure was borne by his relatives and friends. We find, in response to notice issued by the Assessing Officer, the assessee did not produce details of the persons with their source of income, who according to the assessee, had incurred the marriage expenses. We find the Assessing Officer made an addition of ₹ 5 lakhs on account of such expenditure which was restricted to ₹ 4 lakhs by the learned CIT(A). It is the submission of the learned counsel for the assessee that the addition is unwarranted since the assessee lost his father at the age of 14 and was leading a simple life style and the expenditure was incurred by his uncle. However, the learned counsel for the assessee was unable to provide the details o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee furnished the copy of the billing cum transaction and holding statement by Stock Holding Corporation of India Ltd. From the various details furnished by the assessee, the Assessing Officer noted that the sale consideration of ₹ 5,95,248 was received from M/s. Gold Star Finvest Pvt. Ltd. It was noted by the Assessing Officer that a detailed enquiry was conducted in the case of Shri Mukesh Choksi, M/s. Gold Star Finvest Pvt. Ltd. and M/s. Richmond Securities Pvt. Ltd., broker companies. It is further noted that the brokers and Mr. Choksi facilitated a number of parties by way of issuing bogus capital gain bills. This fact has been admitted by Mr. Choksi vide his statement dated 26th April, 2002 wherein he stated that he has is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rring to pages 49and 50 of the Paper Book, he submitted that there is no dispute to the purchase of shares since these were subsequently dematerialised. Thus there is no dispute about the purchase of the shares. Referring to the statement of Mr. Mukesh Choksi, a copy of which is placed at page 150 of the Paper Book, he submitted that Mr. Choksi had given a general statement but there is no specific allegation against the assessee, since he has not taken the name of the assessee. He accordingly submitted that the shares were duly purchased and sold by the assessee fulfilling the conditions for eligibility of deduction u/s. 54F. Therefore, the same should be allowed. 6. The learned DR, on the other hand, strongly relied on the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had purchased the shares which were duly transferred to the Demat account, and, in absence of any allegation against the assessee by Mr. Choksi it cannot be said that the sale of the shares is bogus. In this view of the matter, we hold that the sale transaction entered into by the assessee is genuine transaction. Since the Assessing Officer has not disputed regarding the purchase of house property and since the assessee fulfils the conditions for treating the profit on sale of such shares as long term capital gain and fulfilled the conditions for allowability of deduction u/s. 54F, therefore, we set aside the order of the CIT(A) and direct the Assessing Officer to allow the claim of the assessee. This ground by the assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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