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2022 (8) TMI 1333 - ITAT INDOREBogus LTCG - Addition u/s 68 - unexplained credit u/s 68 - sale of shares sold on recognized stock exchange and, eligible for exemption u/s 10(38) denied - DR argued that the transactions done by assessee are only paper-transactions and the capital gain declared by the assessee is not a real profit but a bogus income arranged by assessee - HELD THAT:- The transactions claimed to have been done by the assessee are surrounded by a thick cloud of glaring fallacies which demonstrate that the impugned transactions are not genuine. We also observe that the Hon’ble Chennai Bench of ITAT has also decided a case in Sudha Eashwar [2020 (1) TMI 771 - ITAT CHENNAI]on similar facts. The crucial facts of the case are such that the scrip involved was Turbotech Engineering Ltd.; the assessee purchased in cash on 22.11.2011; got transferred in her own demat A/c after about 1 and half year; subsequently sold and declared a hefty capital gain. On these facts which are analogous to the facts in present appeal, the Hon’ble Co-ordinate Bench upheld the action of revenue in holding the capital gain as bogus. We respectfully agree with the decision of Hon’ble Coordinate Bench which is very much applicable to present appeal before us. In view of foregoing discussions at length, we do not find any infirmity in the action of lower authorities in rejecting the capital gain declared by the assessee and treating the same as undisclosed income u/s 68. Hence we confirm the addition made by lower authorities. This issue of assessee, therefore, fails. Addition on the premise that the assessee must have certainly incurred expenditure @ 2% in paying commission / charges to the persons engaged for arranging bogus capital gain - We observe that the amount added by Ld. AO is reasonable and it does not call for any interference by us. Hence no relief is warranted to the assessee in that respect. The addition made by Ld. AO is therefore upheld. This issue of assessee also fails. Appeal of assessee is dismissed.
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