CA Shraddha (Mcom, CS Exe.) (Service) (224 Points)
03 December 2011Hello All,
Can anyone solve my query please?
A person made investment in shares before 15 years back out of his withdrawals from his proprietorship concern. Now after 15 years the sale proceeds of such shares is credited to his capital a/c by making transfer from his personal bank account. The AO treated the same as alleged unexplained investment u/s. 69b. Whether his action is tenable or not?
Thakyou in anticipation.
Aman Mehta
(CA Qualified CMA Final and CS Executive)
(63 Points)
Replied 03 December 2011
The main issue to be considered is whether investments were disclosed in Balance Sheet earlier years and dividend income was properly shown(although it is exempt). If assessee has not done this and not able to convice AO, section 69B authorises the AO to consider it as deemed income.
CA SOHAM SHUKLA
(Nil)
(157 Points)
Replied 03 December 2011
1) I agree with Aman Mehta.
2) Verify whether the Assessee has disclosed the necessary transections in his books and the AO can be convinced only on the bases of relevant records.
Vikas
(CA)
(1135 Points)
Replied 03 December 2011
CA Shraddha (Mcom, CS Exe.)
(Service)
(224 Points)
Replied 05 December 2011
Yes friends the assessee has offered dividend income in his return of income. Further, he is also in the possession of share certificates duly registered in his name but personal books of accounts have not been maintained by him.
Further do you all have any comments regarding validity of attracting provisions of 69B in current year because as per the wordings of the section it should be attracted in the year of making investment rather than the year of disposal.
Master GSTR-9 and 9C with India's First Unique Live Course with Live practical training
CAclubindia
