The Tribunal held that the assessee has not explained the source of cash deposits and investment in property. Order of the AO is affirmed. As regards the sale of shares below market value the difference is taxed under section 56(2)(vii)(c) of the Act. However unexplained bank deposit is taxed, the assessee is allowed deduction in computing the his income qua shares. (AY-2014-15)
K.P. Johny v.ACIT (2023) 157 taxmann.com 31 /37 NYPTTJ 1636 (2024) 227 TTJ 305 / 235 DTR 85 (Cochin)(Trib)
S. 69 :Unexplained investments-Cash deposits-Investment in company is not explained-Investment is property-Not substantiated-Addition is affirmed-Sale of shares-Less than fair market value-Income from other sources-Difference in market value is taxed-Deduction is allowed to the extent addition confirmed of unexplained bank deposits. [S. 45, 56(2)(vii)(c)]