9911796707
TMI Blog2006 (6) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... raised by the assessee is that the CIT(A) has erred in confirming the capital loss of Rs. 83,78,247 claimed by the assessee against sale of shares. It is the case of the assessee that the CIT(A) has erred in branding the loss as "manufactured only on the basis of extraneous and irrelevant considerations" and without appreciating the true nature of the transaction. 3. The assessee-company during the previous year relevant to the assessment year under appeal had sold 2,50,000 equity shares of M/s. Dharamsi Morarji Chemicals Ltd. for a consideration of Rs. 55 lakhs. The sale of the above shares resulted in a loss of Rs. 83,78,246. The assessee was holding the shares for more than 15 years in the nature of investment and the loss was claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see, the defects pointed out by the assessing authority are entirely irrelevant. 6. On going through the orders of the lower authorities we find that the assessee has proved the sale of the shares leaving no reason for doubting. The assessee has furnished the details of parties to whom the shares were sold. All those people are assessed to income-tax and all such particulars were furnished. The fund flow resulting out of the sale transaction was proved and they were through banks. The buyers of the shares confirmed the purchases. The Assessing Officer has disbelieved the transaction mainly on the ground that the sales were not made through stock exchange. In this context, it is useful to refer to Circular No. 704 issued by the CBDT on 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ontention of the learned counsel appearing for the assessee that the addition has been made on the basis of presumption and not on the basis of any clinching evidence. In the facts and circumstances of the case, we find that the Assessing Officer is not justified in disallowing the capital loss of Rs. 83,78,246. He is directed to accept the loss returned by the assessee and to the extent, the necessary relief available to the assessee under the statute. 7. The assessee is successful in its appeal. 8. The first ground raised in Revenue s appeal is that the CIT(A) has erred in deleting the addition of Rs. 55 lakhs made under section 68 of the Act by way of unexplained cash credits. The finding of the assessing authority was that this ..... X X X X Extracts X X X X X X X X Extracts X X X X
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