Question of law

Whether ITAT is justified in confirming deletion, of addition of Rs. 93,45,000/-received as sale proceeds of shares held as investments made under Section 68 of Income Tax Act 1961?

Facts of the Case

The assesse is engaged in trading of shares and security and in previous years acquired shares of some companies. Those were sold during the assessment year in question. The amounts received from sale of the shares were shown as receipts & Said transaction occurred in ordinary course of Business

The assesse for AY 2003-04 reported over 96,25,000/- as a receipt and for AY 2004-05 1,50,04,515/-. A notice under Section 147/148 was issued which led to the reopening of the assessment. The AO by his order, added 93,45,000/- on his conclusion that various amounts received from 21 parties, as purchase consideration were suspect.

Contention of CIT (A)

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