2005 (3) TMI 91

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....o the Calcutta Stock Exchange through the broker Ajit Kumar Dey of Calcutta. Consequently, the appeal preferred by the Department was dismissed by the Tribunal. 2. The necessary facts are that the assessee has filed his return of income-tax on October 31, 1991, declaring the net income of Rs. 4,06,810/- for the assessment year 1991-92. The matter was taken up for scrutiny and notice was issued under section 143(2) which was served upon the assessee, whose representative appeared. During the course of assessment proceedings, it came to the notice of the Assessing Officer that a ticket for Rs.50,000/- of the Calcutta Stock Exchange from Shri Ajit Kumar Dey was purchased allegedly by the assessee, while according to the (Assessing Officer),....

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....ock Exchange Association Ltd. Or from Ajit Kr. Dey, Under the circumstances, addition made is deleted. (relief Rs. 11,00,000/-)." 2. Aggrieved from the above order of the Commissioner, the Department went up in appeal before the Tribunal, which as already noticed, vide order dated August 3, 2001, wherein it is held as under: "We have heard the rival parties and have perused the material placed on record. We have also examined the case law relied upon. In the instant case, before making the addition, the Assessing Officer has not conducted any enquiry with the Calcutta Stock Exchange and the assessee has proved by all material at his disposal that the payment of the Calcutta Stock Exchange Association Ltd. was only Rs. 50,000/- t....

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....of the Assessing Officer is based upon conjectures and surmises. 5. The arguments addressed on behalf of the appellant suffer from a basic fallacy. Receipt No. 1936 issued by the Calcutta Stock Exchange Ltd. records the name of Ajit Kumar Dey and states that deposit and cost of unit No.7 from Anandi Nath Dutta. The column of total cost for transfer deed has been scored out in the receipt. Cheque No. 25283 issued on Hong Kong Bank was issued by the respondent-assessee. If the Assessing Officer had any doubt in regard to the bona fides of the assessee, nothing prevented the Assessing Officer from exercising his powers under the Act and summoning the record of the Calcutta Stock Exchange and/or directing Anandi Nath Dutta to appear before h....