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TMI Blog2015 (3) TMI 713X X X X Extracts X X X X X X X X Extracts X X X X ..... s or disallowance. Possibly, an explanation may have been required from assessee in the given facts of this case as to why it acquired the shares even when the company was facing winding up proceedings but the fact remains that the efforts to rehabilitate the company were undertaken. The lack of proper explanation undoubtedly might have justified the addition. The disallowance was ultimately directed and upheld by the ITAT, however, the reasoning of the ITAT in holding that the penalty proceedings required satisfaction of a higher threshold of proof, which confirmed the basis for it, ultimately cannot be faulted. - Decided against revenue. - ITA 194/2015 - - - Dated:- 13-3-2015 - S. Ravindra Bhat And R. K. Gauba,JJ. For the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT by the impugned order directed the deletion of penalty amount based on reasoning that the AO did not make any effort to discharge the burden placed upon him to investigate and to bring on record some material to dispute the assessee s contentions with regard to the actual sale being at ₹ 6000/-. 3. The Revenue urges that the assessee accepted the additions made in the circumstances since there was no explanation as to how the shares were purchased for over ₹ 23 lakhs in AY 2004-05, the disallowance was justified, as was the penalty. 4. The ITAT pertinently observed as follows: It is further relevant to note that what the AO found was that the PHWL was registered with BIFR even prior to the date stated by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shares has not been disputed by the AO in any of the earlier assessments, how the authorities can canvass a view in the instant year that such purchase price was inflated in earlier years. It is trite that the transactions which have not been disputed in the earlier years cannot be reviewed in the assessment of the subsequent years. This type of stand would have been admissible if the AO had not accepted the purchase price of shares as genuine in the assessment of such years when these shares were purchased. Once these transactions have been accepted, then it is not possible to take up such issue for examination in the assessment of the subsequent year. The only transaction which took place in the instant year is the sale of such shares. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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