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2018 (10) TMI 1649 - ITAT BANGALORE
Bogus LTCG earned on sale of shares - Exemption under section 10(38) denied - appellant had dealt in "Penny Stocks" - HELD THAT:- Since the assessee has placed the contract note, payment through cheques identifying the company whose shares were transacted, the genuineness of claim of long-term capital gain should not have been doubted. We do not find merit in these contentions of the assessee in the light of the facts that there is prevalent practice in the country through which unaccounted money is converted into long-term capital gain by circuitous means.
In the instant case, financials were examined by us and we find that the financial worth of the company is meagre and not at all worth to be invested therein. With such financials, we are unable to understand how there can be manifold increase in the shares. In the light of the duration of transactions and the financials of the company whose shares were transacted, we find that the Revenue has brought sufficient material on record to demonstrate that unaccounted money was introduced in the books of account through long-term capital gain by adopting such method. Whatever judicial pronouncements are relied on, these are in those cases where the transactions are genuine - Decided against assessee.