INCOME TAX ACT, 1961

Section 10(38) Section 68

Income from undisclosed source - Addition under section 69 - Unexplained investment - Validity of

Assessee had purchased and sold the shares of company which got amalgamated into another company. AO alleged that scrips were used by entry providers for providing bogus accommodation entries and also noted that in some other matter in the course of proceedings under section 131 before Investigation Wing, one chartered accountant had confirmed that he had provided accommodation entry in the scrip of amalgamated company and based on such statement of chartered accountant, he drew adverse inference that this was also same kind of accommodation entry. Therefore, AO made addition under section 69 Held: Once purchase of the shares were not doubted and sale has been made through BSE routed through DMAT account then consideration received had to be treated from amount of sale of shares whether the price was rigged or not. Once the SEBI had held that there was no adverse evidence or material that there was any violation of provision of PFUT regulation in respect of another company and restrain order on the trading was revoked, then it follows that share price of which was sold for genuine quoted price and therefore, the sale proceeds had to be reckoned from sale of such shares and would be treated as explained credit or investment.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15

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