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2010 (10) TMI 687 - ITAT, MUMBAILTCG or STCG - assessee in the present case is an individual who filed his return of income for the year under consideration on January 9, 2006 declaring total income at Rs. 11,85,390 - The issue which is involved in the present case is relating to the determination of date of transfer and period of holding of shares by the assessee which were sold by him in the year under consideration giving rise to capital gain - Circular No. 768 issued on June 24, 1998. In the said Circular, the Board has discussed the said change as well as the salient features of the new system - The claim of the assessee regarding "date of transfer" and "period of holding" of the shares sold thus was made on the basis of purchase of shares claimed to be made through broker in the month of July, 2003 which were stated to be transferred to the so called pool demat account maintained by the broker - It is therefore necessary to trace the corresponding purchases of shares from the said demat account maintained by the broker in order to verify whether such purchases of respective shares were actually made by the said broker on behalf of the assessee and the shares so purchased were credited to the said demat account and were lying there till the same were transferred to the demat account of the assessee after a period of more than one year - Only on such verification, would it be possible to establish the link between sale of shares with the corresponding purchases as envisaged in the Central Board of Direct Taxes Circular No. 768 dated June 24, 1998 and once such link is established the date of transfer of shares to the assessee and the period of holding of the said shares by him could be determined by applying Board Circular No. 704 - Appeal is allowed for statistical purpose
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