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TMI Blog2018 (11) TMI 694X X X X Extracts X X X X X X X X Extracts X X X X ..... "the Act") on long term capital gains arising out of sale of 5500 equity shares of one M/s.Lifeline Drugs & Pharma Ltd., and treating the consideration of Rs. 13,56,420/- received on such sale under the head ''income from other sources''. 3. Ld. Counsel for the assessee submitted that assessee had acquired 200 equity shares of face value of Rs. 10/- each of one M/s.Lifeline Drugs & Pharma Ltd., through off market purchase on 18.07.2012. As per the Ld.Authorised Representative, assessee on account of a bonus shares issued in the rate 4:1, received another 800 shares. Thereafter, as per the Ld.AR, the face value of the share were split in to Rs. 1/- per share, thereby increasing the holding of the assessee to 10,000 shares. As per the Ld.AR, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce any evidence to show, how he identified the shares of M/s.Lifeline Drugs & Pharma Ltd., for making an off market purchase. Ld. Departmental Representative also placed reliance on the decision of the Co-ordinate Bench in the case of Shri Heerachand Kanunga vs. ITO (ITA Nos.2786 & 2787/Chny/2017, dated 03.05.2018). 5. I have considered the rival contentions and perused the orders of the authorities below. It is not disputed that long term capital gains claimed by the assessee as exempt u/s.10(38) of the Act arose on account of sale of equity shares of M/s.Lifeline Drugs & Pharma Ltd. It appears that assessee could not produce any evidence as to how it identified equity shares of M/s.Lifeline Drugs & Pharma Ltd., for making an off marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash transferred? When did the assessee received the share certificates and the share transfer forms? How did the assessee overcome the provisions of Sec.40A(3)? Was there adequate cash availability in the books of the assessee on 24.04.2008? Did the assessee travelled to Kolkata? How was the transaction done? Who applied for the demating of the shares? When were they demated? When were the shares transferred to the demat account of the assessee? To whom were the shares sold during the Assessment Years 2010-11 & 2011-12? When were the cheques received by the assessee? From whom did the assessee received the cheques? Was there any cash deposit immediately prior to the issuing of the cheque from the bank account of the purchaser of the shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5000 shares have been purchased together on 24.04.2008. No details in respect of M/s.BPL company is known, what is the product of the company which had lead to the share value of the company to go up from Rs. 20/- to Rs. 352/- in a period of two years. This would clearly be a case where the share value of the company was hitting the circuit breaker of the stock exchange on a daily basis and obviously it would have drawn attention. This being so, as the facts are not coming out of the Assessment Order nor the order of the Ld.CIT(A) nor from the side of the assessee, we are of the view that the issues in this appeal must be restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to substantiate its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have been put to an assessee for rebuttal. Rules of natural justice requires that evidence which is used against the assessee is first put to it and explanation sought, before reliance is placed on such evidence. I am therefore of the opinion that the matter requires a fresh look by the ld. Assessing Officer. I set aside the orders of the lower authorities and remit the question regarding genuineness of the claim of long term capital gains from alleged sale of shares of M/s.Lifeline Drugs & Pharma Ltd., back to the ld. Assessing Officer for consideration afresh in accordance with law. Assessee has to be given all records relied on by the ld. Assessing Officer so that it can offer its explanation. Ld. Assessing Officer is also to keep in min ..... X X X X Extracts X X X X X X X X Extracts X X X X
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