TMI Blog2008 (3) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... m the assessee to purchase the demand drafts as alleged by the Revenue. On the other hand the broker has categorically confirmed that he made the payment of sale proceeds. After lifting the veil Department's enquiry should have gone to establish logically, from the records, that sale consideration was actually the money of the assessee converted under the guise of share transaction. Similarly, here there was no tax planning for which any colourable device or collusion could have been used. It was a simple transaction of sale of shares at the most opportune time which is perfectly in tune with the human nature. As a matter of fact the entire approach and findings of the lower authorities are based on suspicion, surmises and conjecture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder s. 54F. Subsequently, since the builder's project did not get approval and it appeared that the completion of the house property would not be achieved within the stipulated time the assessee filed revised return on 27th March, 2002 withdrawing the claim under s. 54F. The case was processed under s. 143(1) on 21st Dec., 2003. Subsequently, it was taken for scrutiny under s. 143(2) in the normal course. During the scrutiny, the assessee was asked to prove the capital gain and genuineness of the transactions relating thereto. In support of his claim the assessee filed before the AO : (i) Copy of bill issued by M/s S.K. Financial Services, broker, for purchase of shares. (ii) Copy of letter from the company confirming transfer of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s operating. (d) Having relied on various cases, he ultimately treated the entire amount of ₹ 5,67,265 received against the sale proceeds of shares as income from undisclosed and unexplained sources. 6. Before the CIT(A) on directions by the CIT(A), the AO in the remand proceedings was able to get confirmation from the share broker directly. The distinctive numbers of shares actually sold through him and the manner in which the sale proceeds were paid to the assessee after deducting his commission etc. were also confirmed. The shares were quoted at the M.P. Stock Exchange and the rates, at relevant period were also confirmed. The CIT(A), however, confirmed the order of the AO by placing reliance on some Departmental enquiries an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us. Abnormal fluctuation in share prices is a normal phenomena. The learned counsel for the assessee filed a chart showing low and high price of some quoted shares during the 52 weeks as per Economic Times dt. 27th Feb., 2007 from which it can be seen that some shares increased even by more than 100 times. The Departmental enquiries in the case of some other persons and statements of M/s JRD Stock Broker or M/s Yadav Co. in that enquiry too have no bearing on the assessee's case. The. assessee has not dealt with any of them. The evidences submitted by the assessee are not proved to be bogus, false or incorrect. Assessee has no other source of income except rental income and share from partnership firm. The Revenue too has not brought ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
