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2023 (2) TMI 1280 - ITAT MUMBAIAddition u/s 68 - bogus LTCG on share transactions - exemption of income u/s 10(38) denied - reason for selection for scrutiny was “suspicious sale transaction in shares and exempt long term capital gains shown in return (Penny Stock tab in ITS) - HELD THAT:- The burden was on the department to nail the assessee through proper evidence, that there was some cash transaction with the suspected brokers, on whom there was an investigation being conducted by the department. See Shyam R Pawar [2014 (12) TMI 977 - BOMBAY HIGH COURT] - Just because few operators have done some nefarious activities, the assessee cannot be blamed and cannot be denied the gain LTCG merely on the basis of suspicion. As relevant evidence were produced to suggest that the transactions (purchase and sale of shares) were undertaken and thereafter the same was reflected in the Demat Account; and the transactions have taken place through banking channel and through registered broker of Stock Exchange; and there is no evidence to disprove these relevant documents which support the claim of assessee (LTCG). Therefore, the claim of LTCG on the scrip under question cannot be disallowed based on general enquiry conducted by department unless the involvement of assessee is shown in the illegal activities, without which, the impugned action to disallow the claim of assessee cannot be sustained. Decided in favour of assessee.
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