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| The Tax Publishers2020 TaxPub(DT) 4018 (Guj-HC) INCOME TAX ACT, 1961
Section 68
Where assessee purchased shares through company (P) and these transactions were not correctly declared in the books of account of the assessee as one of the directors of the assessee company was a relative of the director of said company (P) for the reason of apprehension of action from SEBI, revenue was not justified in making addition on account of unexplained investments in shares.
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Income from undisclosed sources - Addition under section 68 - Share transaction not recorded in books of account - Disclosure in books not made due to apprehension of action from SEBI
Revenue challenged order of Tribunal upholding order of CIT(A) deleting addition made under section 68 and alternate addition under section 41(1) even though the alleged creditor, R, denied transaction of sales of shares to assessee. Held: CIT(A) categorically established in his findings that shares in question issued were not purchased from R but were purchased through P and these transactions were not correctly declared in the books of account of the assessee as one of the directors of the assessee company was a relative of the director of P for the reason of apprehension of action from SEBI. Considering the fact and circumstances, there was no reason to interfere in finding of CIT(A).
REFERRED : Asstt. CIT v. R.J. Tradelinks Pvt. Ltd. 2019 TaxPub(DT) 8146 (Ahd-Trib).
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE GUJARAT HIGH COURT
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