2018 (12) TMI 971

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....uction u/s 54F. The assessment for impugned AY was framed by Ld. Income Tax Officer, Ward-25(3)(1), Mumbai [AO] u/s 143(3) of the Income Tax Act, 1961 on 28/12/2007 wherein the income of the assessee has been assessed at Rs. 13.55 Lacs as against returned income of Rs. 0.93 Lacs filed by the assessee on 23/09/2005. The assessee being resident individual was engaged in garments business under proprietorship concern namely M/s Pramukh Creation. 2.1 During assessment proceedings, it was noted that the assessee sold 8000 Shares of an entity namely M/s Offshore Finvest Limited on various dates [between 01/07/2004 to 08/12/2004] for net sale consideration of Rs. 12.40 Lacs. The details of the sale have already been extracted in para 3.1 of the....

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.... the state transactions as sham transactions and added the resultant gains of Rs. 11.98 Lacs in the hands of the assessee as cash credit u/s 68. Consequently, deduction u/s 54F as claimed by the assessee against those gains also got disallowed. In the alternative, Ld. AO opined that deduction u/s 54F could also not be allowed to the assessee in view of the fact that the possession of the new property was not obtained by the assessee within stipulate period. 2.4 The assessee was saddled with another addition of Rs. 61,000/- due to low family household withdrawals of Rs. 89,000/- reflected by the assessee. 3. Aggrieved, the assessee contested the same without any success before Ld. CIT(A) vide impugned order dated 21/11/2012 wherein var....

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....share broker Rajendra Prasad Shah has been placed on page number 16 of the paper book, the perusal of which reveal that the stated investment has been sourced by the assessee out of sale proceeds of earlier investment i.e. Geomatsoft' on 04/04/2003. The gain on sale of earlier investment has been reflected by the assessee in his return of income for AY 2004-05 and the same has been accepted by the revenue. In support of genuineness of purchase of impugned shares, the assessee has placed on record contract note, relevant share certificate, statement of demat holding on various dates. The perusal of the share certificate reveal that the said shares were transferred in assessee's name on 06/02/2004 vide transfer number 561, registered fo....