Law:

Section:

Section 68 of the Income-tax Act, 1961 - Cash credits - Assessing Officer held that long-term capital gain declared by assessee was false and transaction was not genuine and considered same as unexplained credit - Assessee had taken shares from market, shares were listed and transaction took place through a registered broker of stock exchange - There was no material before Assessing Officer which could have led to a conclusion that transaction was simplicitor a device to camouflage activities, to defraud revenue - Whether Assessing Officer was justified - Held, no FACTS The assessment completed under section 143(3) was reopened on receipt of the intimation from the Dy. DIT (Investigation), stating that the long- term capital gain declared by the assessee was false and the transaction was not genuine. A cheque had been taken by the beneficiary, i.e., by paying cash equivalent to the cheque amount and the premium thereon. The Assessing Officer held that the assessee failed to lead evidence to support his claim of the long-term capital gains. He passed an order and the amount was considered as unexplained credit and the same was added to the income of the assessee. On appeal, the Commissioner (Appeals) deleted the addition. On further appeal, the Tribunal upheld the deletion, and observed that purchase contract note, contract note for sales, distinctive number of shares purchased and sold, copy of share certificates and the quotation of shares on the date of purchase and sale were sufficient material to show that the transaction was not bogus but a genuine transaction. On revenue's appeal : HELD The assessee had made investment in a company in which he was neither a director nor was he in control of the company. The assessee had taken shares from the market, the shares were listed and the transaction took place through a registered broker of the stock exchange. There was no material before the Assessing Officer, which could have lead to a conclusion that the transaction was simpliciter a device to camouflage activities, to defraud the revenue. No such presumption could be drawn by the Assessing Officer, merely on surmises and conjectures. It was for the Assessing…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492