9911796707
TMI Blog2010 (1) TMI 1171X X X X Extracts X X X X X X X X Extracts X X X X ..... ibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-fareast-language:EN-US;} SHRI D K AGARWAL, JUDICIAL MEMBER AND SHRI P M JAGTAP, ACCOUNTANT MEMBER For the Appellant: Shri S C Tiwari For the Respondent: Shri Ajit K Sinha ORDER PER P M JAGTAP, ACCOUNTANT MEMBER This appeal by the assessee is directed against the order of Learned CIT (A) XXX Mumbai dated 21.2.2007 and the solitary issue arising out of the same relates to the addition of ₹ 40,00,420/- made by the Assessing Officer and confirmed by the Learned CIT (A) on account of unexplained cash credit u/s 68. 2. The assessee in the present case is an individual who filed its return of income for the year under c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... long term capital gains in order to claim exemption u/s 54F and to create source for investment made in residential house. Accordingly, the entire amount of sale consideration of shares to the tune of ₹ 40,00,420/- was treated by the Assessing Officer as unexplained cash credit and the same was added to the total income of the assessee u/s 68. He also denied the exemption claimed by the assessee u/s 54F. On appeal, the Learned CIT (A) confirmed the addition made by the Assessing Officer u/s 68 and also upheld his action in disallowing the claim of the assessee for exemption u/s 54F. Aggrieved by the order of Learned CIT (A), the assessee has preferred this appeal before the Tribunal. 3. We have heard the arguments of both the sides ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee before learned CIT (A) for confronting such material and also affording rights of cross examination of Shri T C Kothari. This was rejected by learned CIT (A) for no valid reason. Law is well settled that the Assessing Officer cannot place reliance on the statement of the Third Parties or inquiries conducted on behind assessee's back. The decision of Hon'ble Supreme Court in the case of Kisharichand Chellaramani, 125 ITR 713 (SC) is a case on the point. The Assessing Officer has not brought any material on record to substantiate that shares brought and sold by the assessee were also part of the bogus bills issued by Shri T C Kothari. 10 In the circumstances, it is to be concluded that the addition has been made by the Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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