2009 (4) TMI 138 - HC - Income Tax

Revenue appeal dismissed as assessee proves share transaction chain through proper documentation under Section 260A

Commissioner of Income Tax, Kolkata - III Versus Bhagwati Prasad Agarwal

The Calcutta HC dismissed the revenue's appeal under Section 260A of the Income Tax Act, 1961, upholding the tribunal's deletion of Rs. 34,81,165 addition ... Income from other sources - Information from third source - determination of nature of income - long term capital gains - Held that - Exchange shows that the name of the assessee is not appearing in respect of the transactions-in-question. The tribunal found that the chain of transaction entered into by the assessee have been proved, accounted for, documented and supported by evidence. The assessee produced before the Commissioner of Income Tax (Appeal) the contract notes, details of his DEMAT account and, also, produced documents showing that all payments were received by the assessee through bank - Information from stock exchange can not be relied upon - Revenue Appeal rejected. The Calcutta High Court, in an appeal under Section 260A of the Income Tax Act, 1961, upheld the Income Tax Appellate Tribunal's order deleting an addition of Rs. 34,81,165 treated as income from other sources. The revenue challenged the deletion, arguing that the assessee's name did not appear in Calcutta Stock Exchange records for the transactions. However, the tribunal found that the assessee had 'proved, accounted for, documented and supported by evidence' the chain of transactions, producing contract notes, DEMAT account details, and bank payment records. The Court held that the appeal did not raise any substantial question of law warranting interference under Section 260A and thus 'summarily dismissed' the appeal, making no order as to costs.