SOM NATH MAINI Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) A , Chandigarh, in ITA No. 829/Chd/2002, for the asst. yr. 1998 -99, proposing the following substantial questions of law :

(2.) THE assessee incurred capital loss on account of sale of gold jewellery and also had short -term capital gain of almost equal amount. The AO observed that short -term gain was not genuine inasmuch as the assessee had purchased 45,000 shares of M/s Ankur International Ltd. at varying rates from Rs. 2.06 to Rs. 3.1 per share and sold them within a short span of six -seven months at the rate varying from Rs. 47.75 paise to Rs. 55. These shares were purchased through a broker, Munish Arora & Co. and sold through another broker, M/s SK Sharma & Co. The AO was taken by surprise by the astronomical rise in share price of a company from Rs. 3 to Rs. 55 and started further enquiry.

(3.) THE AO after enquiry made addition to the income of the assessee, which was upheld by the CIT(A) as well as by the Tribunal.