2015 (3) TMI 713

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....in question reported by the assessee for the relevant AY pertained to the sale of shares of one Pashupati Haryana Woollen Mills Ltd. (PHWL). These shares were purchased during different years at a cost of Rs. 44,26,250/- lakhs. The record evidences that the acquisition of such shares in the relevant year was duly reported and accepted by the AO's concerned. PHWL was eventually directed to be wound up; it was referred to the Board of Industrial and Financial Reconstruction (BIFR), for the purposes of rehabilitation. Ultimately, those efforts failed. During the intervening period the assessee had acquired shares at different periods -the last acquisition being in AY 2004-05 of 4,20,000 shares for a total amount of Rs. 23,76,250/-. In the quan....

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....on him to prove that apparent was not real. Except for the ipse dixit, there is not substantiation of his stand that the sale price was manipulated. What to talk of proving such a thing, the AO has not even taken pains in explaining that the market price of the shares was more than that realized by the assessee. The ld. CIT(A) has proceeded to confirm the penalty by holding that the purchase price of such shares was doctored. We fail to comprehend as to how such a view can be canvassed given the situation that such shares were purchased in earlier years and the figure of Investment in shares is only a brought forward balance. When the purchase price of the shares has not been disputed by the AO in any of the earlier assessments, how the aut....