The assessee purchased shares of a company during the assessment year 2006-2007 at Rs 11\/- and sold the same in the assessment year 2008-2009 at Rs 400\/- per share. In the above case, namely, The Pr. Commissioner of Income Tax Vs Sh. Hitesh Gandhi (ITA-18-2017) (attached) also the assessee had purchased and sold the shares in the same assessment years. The Assessing Officer in both the cases added the appreciation to the assessees\u2019 income on the suspicion that these were fictitious transactions and that the appreciation actually represented the assessees\u2019 income from undisclosed sources. In ITA-18-2017 also the CIT (Appeals) and the Tribunal held that the Assessing Officer had not produced any evidence whatsoever in support of the suspicion. On the other hand, although the appreciation is very high, the shares were traded on the National Stock Exchange and the payments and receipts were routed through the bank. There was no evidence to indicate for instance that this was a closely held company and that the trading on the National Stock Exchange was manipulated in any manner. In these circumstances, following the judgement in The Pr. Commissioner of Income Tax Vs Sh. Hitesh Gandhi, ITA-18-2017, (attached) it must be held that there is no substantial question of law in the present appeal.<\/p>\n
Attached: The Pr. Commissioner of Income Tax Vs Sh. Hitesh Gandhi (P&H High Court)<\/p>\n