9911796707
|
Home
Issues Involved: Disallowance of long term capital gains claimed on sale of shares due to alleged non-genuineness of share transactions.
The High Court of Allahabad heard two appeals arising from the Income Tax Appellate Tribunal's order dated 31.3.2009 concerning the assessment year 2001-02. The assessees had sold shares in the relevant assessment year and claimed long term capital gains, which were disallowed by the Assessing Officer citing non-genuineness of the share transactions. The assessees' appeals were initially dismissed by the Commissioner (Appeals), leading them to file appeals before the Tribunal, which ruled in their favor, prompting the present appeals. During the proceedings, arguments were presented by Sri Shambhu Chopra for the Income Tax Department and Sri Rahul Agarwal for the Assessees. The Tribunal had found that the sales of shares were genuine and not sham transactions based on several factors. Firstly, the Assessees had acquired shares through preferential allotment directly from the Companies. Additionally, the purchases were reflected in the balance sheets of previous years, which had been accepted by the Department. Furthermore, the shares were sold to registered stock brokers and the stock exchange, with the brokers confirming the transactions and payments being made through drafts. The Court considered the aforementioned factors as crucial in determining the genuineness of the transactions. It emphasized that the finding that the sales were not sham transactions was a factual determination by the Tribunal and not illegal. The Court concluded that there was no merit in the appeals and subsequently dismissed them.
|
