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TMI Blog2012 (12) TMI 526X X X X Extracts X X X X X X X X Extracts X X X X ..... uch large amount of cash in saving a/c was not practical - Assessee submit the details of income earned over the years from which cash in hand can be sustained - Held that:- As the assessee shown cash in his Wealth Tax which was in confirmation with cash book & detail submitted before authority by assessee. And fully explained opening & closing balance of cash. Therefore addition made by AO duly deleted. Decision in favour of assessee. - I.T.A. No.4273/Del/2011 - - - Dated:- 20-7-2012 - SHRI RAJPAL YADAV, AND SHRI T.S. KAPOOR, JJ. Appellant by : Shri Satpal Singh, CIT-DR. Respondent by : Shri S.R. Wadhwa, Advocate. ORDER PER TS KAPOOR, AM: This is an appeal filed by the revenue against the order of Ld CIT(A) dated 30.6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sale of shares at a valuation of Rs.10/- per share. The assessee in his reply dated 13.12.2010 submitted that the investment of Rs.9,00,000/- consisted of 18% of the equity capital of the company and it was made with an idea of not only participating as share holder in a profitable venture but was also made with a view to become a director of the company. However, because of some disturbances, the departmental store was closed down and the assessee was finally able to manage to realize Rs.90/- per share only from Shri Rameshwar Lal Induria working director of the company. 4. Shri Rameshwar Lal Induria director of the company was also produced before Assessing Officer and affidavit of the said director regarding purchase of 9000 share ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessing Officer further noted that assessee had made cash deposit in his Savings Bank A/c with Canara Bank, New Delhi. The assessee was confronted and was asked to explain the source of each cash deposit. The AR of the assessee in his reply dated 20th august, 2010 submitted that cash deposit of Rs.37,11,000/- during the year under consideration in to S.B. A/c with Canara Bank, New Delhi had been out of opening cash balance and capital withdrawn from partnership firm M/s Kashmir Arts. In this respect, the Ld AR filed statement of cash deposit with S.B. A/c, copy of bank statement, copy of ledger account of capital and partnership firm M/s Kashmir Arts and copy of Wealth tax return for assessment year 2007-08, on being asked and to explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld CIT(A) after hearing the submissions of assessee observed as under:- As regards ground -1: i) That the Ld Assessing Officer even after verifying the transaction from the company in which the investment was made and from the buyer to whom shares were sold as disallowed the short term capital loss alleging the same to be bogus transaction without anything being brought on record in support of his allegation. ii) That the appellant has paid Rs.9,00,000/- being the amount of investment by subscribing 9000 equity shares of Rs.100/- each and the payment was made by cheque drawn on Canara Bank , East Patel Nagar, New Delhi. iii) That the appellant has received Rs.90,000/- being sale consideration of 9000 equity shares of Rs.100/- ea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer has added the amount of Rs.37,11,000/- in the income of the appellant as unexplained investment. ii) That it has been submitted that appellant was maintaining regular books of account which were subject to audit u/s 44AB of the Act. The financial statements, P L A/ c, Balance sheet, statement of affairs etc. were drawn from the above books of accounts and they were duly audited and filed before Assessing Officer. The Assessing Officer has not pointed out any irregularity in the books of accounts of the appellant. The appellant is also filing his wealth tax return and has declared therein the cash balances available with him at the end of relevant year. iii) That it appears that Assessing Officer had made addition u/s 69 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... DR argued that it was unbelievable for a person to keep such a huge cash in hand in the locker. The Ld DR also argued that opening cash balance claimed by assessee was merely a book entry and there was no physical cash as assessee had been withdrawing from bank further in spite of cash in hand. 11. On the other hand, Ld AR argued that business of the company got closed which the assessee did not imagine at the time of making investment. Therefore, he further argued that assessee would not have realized even 10% had he not made efforts to get whatever he could get. He further argued that there is a transfer deed for transfer of shares and the buyer of share was examined by the Assessing Officer and affidavit was also filed by the buyer. I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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