2010 (2) TMI 1184

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....he I.T. Act." 2. The Assessing Officer noted that the assessee during the year has sold shares of Marudhar Food & Credit Ltd.,(MFCL) and Mantra Online Ltd.,(MOL) for total consideration of Rs. 22,51,450/- and assessee had shown the capital gain from such transaction at Rs. 20,88,982/-. From the contract note issued by M/s. Bubna Stock Broking Services Ltd., with regard to the transactions inviolving the shares of Marudhar Food & Credit Ltd., as well as from the contract note issued by M/s. Prakash Nahta & Co., in this respect the shares of Mantra Online Ltd.,the AO observed that, details as contained in the contract notes it appears that the shares on-line. However, inquiries with the Calcutta Stock Exchange revealed that no such transacti....

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....to accept the capital gains as declared and to tax the assessee in terms of the proviso to section 112(1)(d) r. w. the proviso to the said section." 4. The learned DR submitted that CIT(A) in his order has stated that inquiry should have been made from brokers which the A.O. found were fabricated. It is nowhere clear from the appellate order of the CIT(A) that said inquiries were conducted by virtue of the fact that all the powers are vested in him has not provided on this particular ground/aspect to make fresh inquiry. 5. The learned DR further submitted that it can be seen by common person without knowledge of the law that the assessee has been using the route of stock exchange to create the sources of income and turning the illegal mon....