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TMI Blog2013 (5) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... re holding. However no reference in regard to the information sought and received by the AO is found in the assessment order. It is also seen that neither the assessee has cared to address specific reason for the fall in the price of shares nor has the CIT(A) looked into the aspect. Thus where there is a discrepancy on facts qua the impugned order and the AO and the reasons for the drop in share price have not been addressed by the CIT(A) it would be appropriate to restore the issue back to the file of the CIT(A) with the direction to first address the facts and then consider the applicability of the judgements which are relied to pass a speaking order - appeal of the department is allowed for statistical purposes. - I.T.A .No.-5157/Del ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hares be treated not @ 11.22 per share which was the value of each share as per the balance sheet of M/s Shri Govind Hotels Health Resort P. Ltd. 4. In response thereto, it was submitted on behalf of the assessee that all the evidences like confirmation from the seller had been filed and the payment had been routed through the banking channel. The AO required the assessee vide order sheet entry dated 18.11.2008 to file the purchase value of shares certified by CA of the M/s Shri Govind Hotels Health Resort P. Ltd. The requisite details were not filed. On the contrary vide letter dated 03.12.2012, it was submitted that book value does not have any co-relation with sale and purchase value of the shares and the assessee furnished the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before the CIT(A) before whom it was contended that the ownership of shares and its holding is not disputed by the AO. It was also contended that the assessee filed confirmation, Income Tax Particulars, Bank Details, Copy of Income Tax Returns, Bank Statement etc. of seller of shares Investee Company before the Ld. Assessing Officer. 8.1. It was further claimed that the AO also issued notice U/s 133(6) to the seller of shares and Investee Company. They also confirmed the transactions and purchase price directly to Ld. Assessing Officer. Despite these facts, the AO made the addition on ground that certificates of the CA of the Investee Company was not provided and applied his own formula and calculated the book value of the shares. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned in:- Naresh Khattar vs CIT (2003) 261 ITR 664 (Del) Amar Kumari Surana vs CIT (1997) 226 ITR 344 (Raj.) 9. Considering the submissions, the CIT came to the following conclusions :- "6. I have gone through the facts of the case, assessment order, grounds of appeal, written submissions, case laws referred by the appellant and carefully considered them. In the present case, the Assessing Officer has not brought out any material evidence on record to prove that the amount actually paid for purchase of shares of M/s Shri Govind Hotels Health Resorts Pvt. Ltd. was more than the amount recorded in the books of the appellant. In response to notice under section 133(6), in the books of account of M/s Krishna Info Media Ltd., the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee to demonstrate the reasons. He was of the view that there must have been sufficient material before the AO to come to that conclusion even if there is no reference in the order but it was urged the fact remains that it is for the assessee to prove a particular investments stated to be made for shares whose at par value was Rs.10/- could be made at 50 paise. 11. The Ld. AR, on the other hand relying upon the impugned order contended that nothing has been brought on record by the AO to show that the value of the share was Rs.11.22 per share and the manner in which the working has been done by the AO can not be supported on law or facts. It was submitted that once it is found on record that the assessee has invested in the said ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ack, distress sale by the seller, poor condition of the business, future life of the property, surrounding area/atmosphere and so forth. Therefore, in these situations, on preliminary issue itself, the Ld. Assessing Officer's treatment of 'undisclosed sources' is not at all justified." 14. Accordingly in the afore-mentioned peculiar facts and circumstances, where there is a discrepancy on facts qua the impugned order and the AO and the reasons for the drop in share price have not been addressed by the CIT(A). We are of the view that it would be appropriate to restore the issue back to the file of the CIT(A) with the direction to first address the facts and then consider the applicability of the judgements which are relied. Accordingly for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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