CIT Vs. SADHANA JAIN

JUDGEMENT

(1.) THIS is the Departments appeal under section 260A of the IT Act, 1961 challenging the order of the Tribunal dt. 5 -4 -2005 in ITA No. 2966/Del/2002 for the assessment year 1995 -96.

(2.) ON 8 -5 -2009, the appeal was admitted on the following questions of law as framed in the memo of appeal:

(3.) BRIEFLY stated, the facts are that the respondent -assessee is stated to have purchased certain shares of M/s. Electra Exports Ltd. worth Rs. 91,37,900 from 207 persons during the financial year 1994 -95 relevant to the assessment year 1995 -96. In the return for the year 1994 -95, the assessing officer however, sought to make an addition of this amount of Rs. 91,37,900. On the request of the assessee when notices were handed over to the assessees representative and no response was received from the persons who were stated to have sold the shares of M/s. Electra Exports Ltd. the burden of proof which stood on the assessee was held to have remained undischarged. Aggrieved by the order of the assessing officer, the assessee preferred an appeal before the Commissioner (Appeals) who having examined the matter recorded a clear finding that the list of persons from whom the shares had been purchased had already been disclosed by the assessee in her books of accounts and, therefore, the amount of transaction, its date and the address of the persons could have been verified from these details and, therefore, the assessee had discharged its burden of disclosing the names from whom she had purchased the shares. It was further held that the assessing officer had proceeded to make the addition of Rs. 91,37,900 under section 69A of the IT Act though burden of proof of the assessee stood discharged.