2013 (10) TMI 837

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....ssee-appellant, set aside the assessment order, dated 30.03.2006, as well as the appellate order, dated 21.01.2008, passed against the assessee. 2. The appeal has been admitted, for hearing, on the following substantial question of law:    "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in law in setting aside the orders passed by the Assessing Officer as well as by the Commissioner of Income Tax (Appeals) and directing the Assessing Officer to accept Rs. 18,73,210/- as a long term gain of the assessee from the sale of shares of M/s Ocean Entrade Limited and M/s United Impex Limited." 3. The assessee-respondent, who is an individual, filed annual return, for the ....

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....ding Demat account, bank statement, etc. 6. According to the relevant assessment order, the Assessing Officer took the view that the assessee could not produce any documentary evidence of purchases of shares except showing the purchases of the shares, in question, in her balance sheet, along with the income tax return, showing purchase of shares from S. K. Jain & Company, which is a share broker. Having arrived at the conclusion that the assessee had not been able to produce sufficient materials to justify the long term gain, which the assessee had claimed, the Assessing Officer treated the income, derived from sales of shares by the assessee, as her income from undisclosed sources and taxed the same accordingly. 7. Aggrieved by the a....

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....ed Appellate Authority had not given relief to the assessee on the ground that since the prices of shares of the companies concerned could not have risen as high as had been claimed to have risen, the assessee's claim for profits were liable to be rejected. The observations, so made, by the learned appellate authority, are not, according to the learned Tribunal, based on any material and can be regarded as assumption and surmises inasmuch as nothing had been brought on record to show that what the assessee had claimed, as regards the value of the shares, was factually incorrect and, hence, in these circumstances, the learned Appellate Authority ought not to have confirmed the assessment order of Assessing Officer. 9. On the basis of the ....