INCOME TAX ACT, 1961

Section 143(3)

Assessment - Addition - Sale of share allegedly not disclosed in books -

AO held that though the opening stock of share were duly debited in the Profit and Loss account as part of cost of production, but neither the sale amount nor the profit on sale of shares had been shown in the credit side of the Profit and Loss account. Accordingly, he made an addition as sale consideration not disclosed by the assessee company. CIT(A) confirmed the action of the AO on the ground that assessee had not filed any confirmation in this regard or Demat account or the bank statement.Held: It cannot be disputed that amount on account of sale of shares have been duly reflected in the P&L account. Once there was no dispute regarding sale of shares and profit on such shares duly disclosed, then to treat that whole amount of sale separately as income of the assessee once again would be absurd. Whence, neither the auditor had disputed the sale nor the accounts otherwise show that the sale of shares had not been reflected, then to hold that the entire sale of shares should be added would be erroneous. Thus, the addition of this amount in wake of certain documents could not be upheld and same was directed to be deleted.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2009-10

INCOME TAX ACT, 1961

Section 37(1)

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