Tribunal overturns additions under section 69 for share acquisition, citing lack of information and proper documentation.

The Tribunal allowed the appeals of the assessees, overturning the additions made under section 69 for the acquisition of shares. The Tribunal noted that the assessees were not provided with crucial information or the opportunity to cross-examine, and that the shares were purchased through independent brokers with proper documentation. As a result, the additions of Rs. 63,000/- and Rs. 52,500/- were deleted in both cases. Legal grounds were not addressed in this decision.

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Issues involved:
Two appeals by different assessees against the order of CIT(A)-32, Mumbai for the assessment year 2005-06.

Issue 1: Addition u/s 69 - Acquisition of Shares

The Assessing Officer made additions of Rs. 63,000/- and Rs. 52,500/- u/s 69 in both cases based on information received regarding a hawala racket involving the assessees. The assessees explained the source of funds as speculative profit from brokers, but the AO was not satisfied. The CIT(A) upheld the additions, leading to appeals before the Tribunal.

Judgment:
The Tribunal found that the assessees were not provided with the statement of the individual on whose basis the additions were made, nor were they allowed to cross-examine. The shares were purchased through independent brokers, and share certificates were issued to the assessees. Considering these facts, the Tribunal held that the additions were not justified and deleted the amounts added in both cases.

Outcome:
The appeals of the assessees were allowed, and the additions of Rs. 63,000/- and Rs. 52,500/- were deleted in their respective cases. The legal grounds were not disposed of at this stage.

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