The Tax Publishers2019 TaxPub(DT) 5141 (Del-Trib) : (2019) 073 ITR (Trib) 0074

INCOME TAX ACT, 1961

Section 68

Assessee having furnished copy of application made to the Investee Company for allotment of shares, copy of Board resolution passed by investee company approving allotment of shares, copy of share certificate and bank and Demat Account Statements, discharged onus cast on him under section 68, therefore, addition made merely relying on the statements recorded by the Investigation Wing as well as information received from the Investigation Wing could not be sustained on account of AO's failure to conduct a separate and independent enquiry and to examine the concerned person who could affirm the statements already recorded by Investigation Wing.

Income from undisclosed sources - Addition under section 68 - Sale proceeds of shares - Statement in case of certain entry operator recorded by Investigation Wing

Assessee claimed long-term capital gain on sale of shares of ETTL as exempt under section 10(38). AO based on statement recorded by Investigation Wing during search in case of certain entry operator treated assessee's claim as bogus and subjected sale proceeds of shares to addition under section 68.Held: Assessee having furnished copy of application made to the Investee Company for allotment of shares, copy of board resolution passed by investee company approving allotment of shares, copy of share certificate and bank and Demat Account Statements had discharged onus cast on him under section 68, therefore, addition made merely relying on the statements recorded by the investigation Wing as well as information received from the Investigation Wing could not be sustained on account of AO's failure to conduct a separate and independent enquiry and to examining the concerned person who could affirm the statements already recorded by Investigation Wing.

Relied:CIT v. Fair Finvest Ltd. (2013) 357 ITR 146 (Del-HC) : 2013 TaxPub(DT) 912 (Del-HC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2015-16



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