TaxTMI 
TaxTMI 
2008 (3) TMI 689
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....sed sources and in the process rejecting the claim of the assessee that it had gained a sum of Rs. 5,37,740 as a long-term capital gain on the sale of the above shares. 3. The facts and circumstances giving rise to the present appeal are as follow : 4. The assessee is an individual. The assessee filed his return of income on 30th July, 2001 at Rs. 97,762 which included long-term capital gain of Rs. 5,37,740 from sale of shares which was claimed as exempt under s. 54F. Subsequently, since the builder's project did not get approval and it appeared that the completion of the house property would not be achieved within the stipulated time the assessee filed revised return on 27th March, 2002 withdrawing the claim under s. 54F. The case wa....
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....s, the concerned brokers namely M/s JRD Stock Brokers, New Delhi and M/s Yadav & Co., New Delhi have categorically denied share transactions and stated that they first received cash from person who used to seek entries and gave them cheques. (b) Increase in share price in just 14-15 months by more than 25 times was not a normal thing. (c) Large number of persons have done similar transactions during the same period which shows that a racket was operating. (d) Having relied on various cases, he ultimately treated the entire amount of Rs. 5,67,265 received against the sale proceeds of shares as income from undisclosed and unexplained sources. 6. Before the CIT(A) on directions by the CIT(A), the AO in the remand proceedings was able to....
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....nd was not a small company. This also shows that the assessee was all through keen to co-operate and discharge her onus to the maximum as could be possible within her capacity and power. The assessee has no relation with the directors of the company and was in no way in the capacity of affecting the market price of the shares. The increase in share prices by more than 25 times too cannot be the basis to assume that the transaction was bogus. Abnormal fluctuation in share prices is a normal phenomena. The learned counsel for the assessee filed a chart showing low and high price of some quoted shares during the 52 weeks as per Economic Times dt. 27th Feb., 2007 from which it can be seen that some shares increased even by more than 100 times. ....