2012 (1) TMI 320 - HC - Income Tax

Unexplained investment under section 69 - sale of the shares - penny stocks - ITAT deleted the addition - Held that - Similar question raised by the Revenue in the case of CIT Vs. Shri Mukesh Ratilal Marolia 2011 (9) TMI 919 - BOMBAY HIGH COURT has been dismissed. HC held it is neither the case of the Revenue that the shares in question are still lying with the Assessee nor it is the case of the Revenue that the amounts received by the Assessee on sale of the shares is more than what is declared by the Assessee. Though there is some discrepancy in the statement of the Director of M/s. Richmand Securities Pvt. Ltd. regarding the sale transaction, the Tribunal relying on the statement of the employee of M/s. Richmand Securities Pvt. Ltd. held that the sale transaction was genuine. ITAT is correct in holding that the purchase and sale of shares are genuine and therefore, the Assessing Officer was not justified in holding that the amount as unexplained investment under Section 69 cannot be faulted. - Decided in favour of assessee.