2019 (5) TMI 1987

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....ainst the facts on record. 2. For that, the addition of Rs. 5,40,000/- being the initial investment/cost price of shares purchased on 16.05.2013 out of past savings & earnings duly shown in the balance sheet of the assessee is ab initio illegal, arbitrary and bad in law. 3. For that only the income of the relevant year should have been added and not the entire receipt which comprises of the initial investments made by the assessee and therefore Rs. 5,40,000/- may be deleted. 4. For that charging of interest u/s. 234 B & C on the assessed income is in contrary to law in view of the decision of Hon'ble Jharkhand High Court in the case of Ajay Prakash Verma dated 25.07.2012 in Tax Appeal No. 38 of 2010 reported in 20....

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.... the appeal of the assessee. 4. Aggrieved by the order of CIT(A), now the assessee is in further appeal before the Tribunal. 5. Ld. AR submitted that Rs. 5,40,000/- is the initial investment/cost price of shares purchased on 16.05.2013 which is out of past savings & earnings and the same has duly been shown in the balance sheet of the assessee. It was further submitted by the ld. AR that only the income of the relevant year should have been added and not the entire receipt which comprises of the initial investments made by the assessee and therefore prayed that the addition made by the AO and confirmed by the CIT(A) may be deleted 6. Replying to the above, ld. DR strongly supported the orders of authorities below and submitted that....

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....he facts available on record before the Tribunal, I find that the A.O. should have added the Long term capital Gain of Rs. 5,05,265/- only instead of Rs. 10,45,265/-being the income of the assessee and not the entire sale receipts, which Included Rs. 5,40,000/- being the investment made by the assessee in purchase of shares. The investment was duly shown in balance sheet of the assessee in previous year and was made out of past earning & savings. To support his claim, ld. AR of the assessee produced copies of balance sheet as on 31.03.2014. On perusal of the same, it reveals that Rs. 3,60,000/- and Rs. 1,80,000/- totalling to Rs. 5,40,000/- have been shown in the balance sheet in the name of Kailash Auto on purchase of 2000 and 1000 shares ....