TaxTMI 
TaxTMI 
2012 (12) TMI 526
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....0,000/- and the second ground taken by the revenue is regarding deletion of addition made by the Assessing Officer on account of undisclosed cash deposit of Rs.37,11,000/- deposited in the bank. 2. The brief facts of the case are that the assessee is engaged in the business of financing and dealing in shares & securities. The return of income was filed on 7th august, 2008 declaring total income of Rs.5,82,520/-. The case of the assessee was selected for scrutiny and necessary notices were issued u/s 143(2) of the Income Tax Act, 1961. During assessment proceedings, the Assessing Officer observed that the assessee had claimed short term capital loss of Rs.8,10,000/- on account of sale of 9000 shares of M/s Sukh Sagar Departmental Store....
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....ration used in section 48 does not have any reference to market value/fair value but only to consideration referred to in sale deed/sale agreement as sale price of assets which have been transferred. The Assessing Officer did not buy the Arguments put forth by assessee and made an addition of Rs.8,10,000/- on the following basis:- i) That the assessee as a prudent person must have been aware of the financial affairs of the Private Limited Company in which he invested. As the shares of private limited company are not quoted on the stock exchange, therefore, there is no scope of volatility in its price. ii) In a short span of three months, there have been no major changes in the financial affairs of the private limited company as appear....
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....nk locker as a mark of abundant precaution to meet any emergency which may arise either to the assessee or to any of his family members. The Assessing Officer did not accept the reply of the assessee on the basis that practice of holding such large amount of cash was not practical and it is against the prudent behavior to withdraw cash from bank and let it keep idle when already one has more than sufficient cash in hand and therefore the assessee was provided with another opportunity to submit the details of income earned over the years from which opening cash in hand can be sustained. The assessee in his reply vide letter dated 13.12.2010 stated that he was in the habit of to keep cash in hand in large sum of money and in this respect he s....
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....llant has appeared in person before ld Assessing Officer and had confirmed the transaction of purchase of 9000 equity shares from the appellant. v) That in the assessment order, the Ld Assessing Officer has mentioned that company has sold to the appellant the shares of Rs.10/- each at a premium of Rs.90/- which is a statement of fact and without any basis because the company had allotted 9000 shares of Rs.100/- each at par to the appellant. vi) That the Ld Assessing Officer has completely disregarding the fact of the case and confirmation of Shri Rameshwar Lal Induria who appeared in person before Ld Assessing Officer and confirmed the transaction as genuine. Shri Rameshwar Lal Induria has also narrated the complete details of sale an....
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....all these deposits in the bank accounts are well recorded in the cash book and there is sufficient balance available in the cash book on each day of deposit. iv) That the assessment of assessee for the assessment year 2006-07 was completed u/s 143(3) vide order dated 28.11.2008 and as per that cash in hand available with appellant at the end of year as on 31.3.2006 was Rs.14,24,204/-. Taking Rs.14,24,204/- as opening balance in assessment year 2007-08, the closing balance available with appellant as on 31.3.2007 was Rs.18,51,704/- which is supported by the summary of cash book for that year. v) That appellant himself has shown in his return of income filed in I.T. Form No.4 as per column No. Schedule AIR at page 19 of return that he h....
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....et the information from outside regarding deposits of cash in to bank rather assessee himself had provided in the return of income. In this respect he took us to page 64 of the paper book where this information was filed by the assessee in Schedule AIR. He also took us to page 50-51 where details of statement showing deposit of cash into bank along with the opening balances of cash in hand was placed. He also invited our attention to page 99-107 of paper book wherein copy of wealth tax return for assessment year 2007-08 & 2008-09 along with statement of assessable wealth of assessee was placed. 12. We have heard the rival submissions of both the parties and have gone through the material available on record. As regards ground No.1 of ....