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The Tax Publishers Nopany & Sons v. ITO [ITA No. 1248/Kol/2012, dt. 11-5-2016] : 2016 TaxPub(DT) 2552 (Kol-Trib) Addition of unexplained investment sale by averaging acquisition price *Facts:* Assessee was found to have sold shares of one Shree Hanuman Sugar & Industries Ltd. The said shares were purchased in two lots at different prices, subsequently bonus allotments had also happened. The sale was not disclosed in the books but were picked in scrutiny by the assessing officer who averaged the price along with the bonus and thus made additions. This was upheld by the Commissioner (Appeals) as well. On further appeal: Held in favour of the assessee that the averaging of price was incorrect, it was seen from the DEMAT accounts that the shares sold could be identified thus the cost in relevance to those were to be applied and the gain be computed thus as regards the bonus shares they are to be treated at zero acquisition cost.

The Tax Publishers

Nopany & Sons v. ITO [ITA No. 1248/Kol/2012, dt. 11-5-2016] : 2016 TaxPub(DT) 2552 (Kol-Trib)

Addition of unexplained investment sale by averaging acquisition price

Facts:

Assessee was found to have sold shares of one Shree Hanuman Sugar & Industries Ltd. The said shares were purchased in two lots at different prices, subsequently bonus allotments had also happened. The sale was not disclosed in the books but were picked in scrutiny by the assessing officer who averaged the price along with the bonus and thus made additions. This was upheld by the Commissioner (Appeals) as well. On further appeal:

Held in favour of the assessee that the averaging of price was incorrect, it was seen from the DEMAT accounts that the shares sold could be identified thus the cost in relevance to those were to be applied and the gain be computed thus as regards the bonus shares they are to be treated at zero acquisition cost.