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TMI Blog2014 (2) TMI 239X X X X Extracts X X X X X X X X Extracts X X X X ..... e grounds in his appeal, and they are briefly stated herein-below for adjudication. 1. Ld. Ld. CIT (A) had erred by confirming the addition to the extent of Rs.36,74,800/- as unexplained investment in shares. 2. Ld. CIT(A) had erred by remitting back the issue with the direction in regard to the addition of Rs.2,05,468 towards profit on sale of shares under the head short term capital gain without considering the fact that the gain arrived from the sale of shares were long term capital gain and further exempt U/s. 10(38) of the Act. 3. Similarly the Revenue has raised several argumentative grounds and they are concised herein-below for our consideration. 1. Ld. CIT (A) had erred in deleting the addition on unexplained investment in shar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all and the shares were purchased in the F.Y.2007-08 for a sum of Rs.16,25,000/- from Sri S.K.Khemka. This is evidenced from theTrial Balance filed by the appellant for the assessment year 2008-09 (as on 31/3/2008) wherein the purchases of shares from M/s.Essar Oil Ltd for Rs.9,84,450/- and of M/s.Reliance Natural Resoruces Ltd. for Rs.6,40,500/- were shown and Sri S.K.Khemka was shown as creditors for the same amount. (Page 1 -3 of the paper book). This purchase was also supported by the contract notes issued by the said Sri S K Khemka. Shri S.K. Khemka was also paid the amount due through cheques in the subsequent year and the bank statement evidencing the same was also furnished in the paper book at page No.7-8. As per the documentary e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the shares were actually purchased for a lesser consideration and that too in the earlier previous year. The appellant submits that the difference between the purchase amount as adopted by the AO of Rs.46,53,460/- and Rs.42,14,450/- adopted by the Investigation Wing amounted to Rs.4,39,010/-. This is due to the fact that the shares of M/s.Reliance Natural Resources Ltd. purchased was only 35000 shares for Rs.14,19,250/- as noted by the Investigation Wing whereas the assessing officer took the number of shares at 45000 (35000+5400+3600+1000) Thus a sum of Rs.4,39,010/- was wrongly taken as unexplained investment by the AO in any view of the matter. The appellant submits in the appeal preferred against the unexplained investment in sha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he peak investment at Rs.36,74,800/- against the correct amount of Rs.19,61,120/- This is without prejudice to the submission made as above that there are no unexplained investments in shares and the entire amount was duly reflected in the books of accounts in full. Against the relief granted by the Ld. CIT (A) on this ground, the department came in appeal before this Hon'be ITAT on the ground that the peak credit method would not be available to the appellant as regular books of accounts were maintained by the appellant. The assessee submits that the amount was added as unexplained investment in shares and therefore the alleged unexplained amount actually invested should be determined and while doing so, there is nothing wrong in telescop ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect, and if found so, the AO may treat the above gains as short term capital gains only. In that case, the AO is also required to recomputed the peak investments by considering the above sales as the sales of the financial year 2008-09, for the purpose of para (a) above. However, the peak investments will remain at Rs.36,74,800/- as on 24.10.2008." From the order of the Ld.CIT (A), it is evident that he has only directed the Ld. Assessing Officer to verify the relevant dates and recompute the income as per merits and facts of the case. Therefore, we do not find any infirmity in the order of the Ld.CIT (A). However as prayed by the assessee, the Ld. Assessing Officer is directed to look into the issue considering the provisions of the Sec.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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