TMI Blog2019 (12) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... IVESHAFTS (INDIA) LTD. VERSUS INCOME-TAX OFFICER AND OTHERS [ 2002 (11) TMI 7 - SUPREME COURT] . The Assessing Officer shall require the assessee to establish who, with whom, how and in what circumstances the impugned transactions were carried out etc., to prove that the impugned transactions are actual, genuine etc. The assessee shall comply with the Assessing Officer s requirements as per law - the assessee s appeal is treated as partly allowed for statistical purposes. - I.T.A. No.1763/CHNY/2019 - - - Dated:- 3-12-2019 - SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER For the Appellant : None For the Respondent : Shri Arunraj, JCIT ORDER Per S. JAYARAMA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enged the jurisdiction of the Assessing Officer to reopen the assessment U/s.147 without tangible material and the action of the ld.CIT(A) in confirming the addition made by the Ld. Assessing Officer in treating the purchase and sale of shares by the assessee, as penny stock transactions. Per Contra, the Ld DR submitted that the assessee has claimed deduction U/s 10 (38) but she has not proved the genuineness, therefore, reiterating the facts and circumstances of this case from the orders of the lower authorities, the Ld. DR supported those orders and pleaded that this appeal be upheld. 4. We have considered the rival submissions. Since, the assessee has taken a plea that the reasons recorded for reopening is not given to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... foundation for the purpose of assessment in so far as Shri Ashok Kumar Kayan has not been provided to the assessee for cross-examination. In the absence of opportunity of crossexamination, the statement remains mere information and such information cannot be foundation for assessment. 10. Admittedly, the assessee has claimed to have purchased 15000 shares from M/s.BPL @ ₹ 20/- per share totaling into ₹ 3,00,000/-. The assessee claims to have paid cash for the purchase of these shares. The primary question would be as to where the purchase was done? If the purchase has been done in Kolkata, how was the cash transferred? When did the assessee received the share certificates and the share transfer forms? How did the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... coming. There is no evidence whatsoever to show that the assessee has held the shares for more than 12 months. This is because assuming that the demat has been done and the shares of M/s.BPL has come into the assessee s demat account and has immediately flown out. Then the factum of the possession of the shares for more than 12 months have to be proved by the assessee. This is also not forthcoming. In reply to a specific query, as the date of the demat of shares, it was submitted by the Ld.AR that the demat was done on various dates. Then the question rises as to why there is so much of difference in the dates of demating when 15000 shares have been purchased together on 24.04.2008. No details in respect of M/s.BPL company is kn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee in ITA Nos.2786 2787/Chny/2017 are partly allowed for statistical purposes. 5. Following the above order, the Assessing Officer shall require the assessee to establish who, with whom, how and in what circumstances the impugned transactions were carried out etc., to prove that the impugned transactions are actual, genuine etc. The assessee shall comply with the Assessing Officer s requirements as per law. On appreciation of all the above aspects, the Assessing Officer would decide the matter in accordance with law. The Assessing Officer is also free to conduct appropriate enquiry as deemed fit, but shall furnish adequate opportunity to the assessee on the material etc., to be used against her and decide the matter in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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