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Issues involved: Appeal by revenue against CIT(A) order for A.Y. 2000-01, undisclosed income from share transactions, validity of addition u/s 148.
Summary: The appeal was filed by the revenue against the CIT(A) order for the assessment year 2000-01. The case involved undisclosed income arising from share transactions and the validity of the addition made under section 148. The assessing authority initiated proceedings under section 158BD based on a search and seizure operation at the premises of Shri Manoj Aggarwal. It was alleged that the assessee had transacted with Shri Manoj Aggarwal for converting black money into white through bogus share transactions. The assessing authority treated a portion of the share sale consideration as undisclosed income. Further, reassessment proceedings were initiated for the remaining amount. The revenue contended that the CIT(A) erred in deleting the addition of the undisclosed income of the assessee. The revenue argued that the assessee was involved in converting black money into white through unlisted share transactions with accommodation entries. Upon review, the tribunal found that the assessing authority lacked evidence to support the addition of undisclosed income related to transactions with a third party, M/s JRD Stock Brokers. The CIT(A) verified the assessment records and noted that the assessee had provided contract notes for the share transactions, which were not proven false. The tribunal upheld the CIT(A)'s decision, stating that no adverse inference was made regarding the share transactions, and the revenue failed to produce contrary evidence. As a result, the revenue's appeal was dismissed, affirming the CIT(A)'s order.
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