Case Law Details
SUMMARY OF THE CASE LAWS
It was the duty of the A.O. to bring on record sufficient evidences and material to prove that the documents filed by the assessee were bogus, false or fabricated and the long term capital gain shown by him was actually his income from undisclosed sources.
RELEVANT PARAGRAPH
FACTS
The brief facts of the case are that the assessee filed his return of income on 29-10-2001 declaring an income of Rs. 10,65,588/- which includes the Long Term Capital Gain (LTCG) of Rs. 9,55,365/-. The assessee applied vide application No. 2163 for the allotment of shares in M/s. B.T. Technet Limited. Share application money of Rs. 25,000/- was sent through D.D. No. 376096 dated 01-09-1999 drawn at Vijaya Bank, Jeoni Mandi, Agra. The assessee received allotment letter dated 04-10-1999 showing the folio number P00084. Two share certificates of 5000 shares each showing the distinctive numbers and certificate numbers were also received by the assessee. The assessee has duly shown the investment. These shares were sold at the rate of Rs.106/- through the broker M/s. Agarwal & Co. being the member of Delhi Stock Exchange. On the sale of shares, the assessee has shown LTCG. The A.O. did not accept the genuineness of the sale transaction and observed that the assessee could not produce the broker. The identity of the buyer and the seller was also not established. He also doubted that in just 14 months time the prices of the shares cannot be increased by more than 11 times. The CIT(A) confirmed the order of the A.O. When the matter went before the Tribunal, the Id. Judicial Member (J.M.) accepted the genuineness of transactions while the Id. Accountant Member (A.M.) did not agree with the decision of the J.M. and has written a dissenting order.
Please become a Premium member. If you are already a Premium member, login here to access the full content.