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TMI Blog2016 (11) TMI 439X X X X Extracts X X X X X X X X Extracts X X X X ..... CG as declared by the assessee in the return of income for A.Y. 2004-05 and therefore the treatment of the same as income from undisclosed source by the authorities below is incorrect. Accordingly on merits of the issue we hold that the gain of ₹ 6,94,327/- on sale of 95000 shares of Talent Infoway Ltd. by the assessee in the year under consideration is to be assessed under the head long term capital gain and we therefore delete the finding of the authorities below that this income be assessed as undisclosed income alongwith the addition of ₹ 8,679/- under section 69C of the Act on account of alleged commission @1.25% thereon. - Decided in favour of assessee - ITA No. 5847/Mum/2014 - - - Dated:- 23-9-2016 - Shri Jason P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the mode of purchase of 9500 shares of Talent Infoway Ltd. claimed to be made through Goldstar Finvest Ltd. The assessee submitted that it had purchased the 9500 shares of M/s. Talent Infoway Ltd. through Goldstar Finvest Pvt. Ltd. vide bill No. CC/2003/044/21 dated 04.03.2003 for ₹ 14,655.21 and sold them in the year under consideration for a consideration of ₹ 7,08,982/-, thereby resulting in LTCG of ₹ 6,94,327/- which has been included in the computation of income attached to the return of income. The AO, however, did not accept the assessee s explanation and treated the said LTCG of ₹ 6,94,327/- as income from undisclosed sources and also made an addition of ₹ 8,679/- under section 69C of the Act on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which remained on paper. The learned CIT(A) accordingly dismissed the assessee s appeal vide the impugned order dated 23.07.2014. 3. Aggrieved by the order of the CIT(A)-27, Mumbai dated 23.07.2014 for A.Y. 2004-05, the assessee has preferred this appeal raising the following grounds: - 1. On the fact and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in reopening the case, without considering the provision of law. 2. On the fact and circumstances of the case as well as in Law, the Learned CIT(A) has erred in confirming the action of Learned Assessing Officer in treating the Long Term Capital Gain of ₹ 6,94,3271- earned on account of sate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to tax that has escaped assessment is actually Nil , the only difference being the tax rate applicable. The learned A.R. for the assessee contends that section 147 of the Act requires that income chargeable to tax must have escaped assessment and in the case on hand no income chargeable to tax had actually escaped assessment. The learned A.R. for the assessee submits that the reasons recorded by the AO are not based on a correct appreciation of facts. It was further contended that reliance on the statement recorded under section 131 of the Act of a third party cannot constitute the basis for the AO entertaining reason to believe for initiating proceedings under section 147 of the Act for reopening the case. 4.1.2 In respect of grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see s contentions, we, prima facie, find that on merits it is not in dispute that the assessee has purchased the 9500 shares of Talent Infoway Ltd. for ₹ 14,655/- vide bill dated 04.03.2003 (contract Note placed at page 23 of the paper book) and that the same have been sold for a total consideration amounting to ₹ 7,08,982/- in the year under consideration on 20.03.2004 and 26.03.2004 (details/summary placed at page 47 to 59 of paper book). Once the date and source of purchase of the said shares and the date and sale consideration thereof are not disputed, in our considered view, the transaction is one of LTCG as declared by the assessee in the return of income for A.Y. 2004-05 and therefore the treatment of the same as income f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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