2018 (4) TMI 453 - ITAT JAIPUR

Bogus Long term capital gain - undisclosed income - assessee has shown the long term capital gain income exempt u/s 10(38) - subsequent merger of the company as per the scheme of merger - arrangement with the person providing accommodation entries - Held that:- When the payment of purchase consideration paid through cheque directly to the company and the subsequent merger of the company as per the scheme of merger approved by the High Court, then the transaction and sale of shares in question cannot be held as bogus. The AO has passed the impugned order on the basis of the statement of Shri Deepak Patwari which is identical as in the case of Shri Pramod Jain & others vs. DCIT [2018 (2) TMI 300 - ITAT JAIPUR].

Accordingly following the order of the Coordinate Bench of this Tribunal, we hold that the addition made by the AO is merely based on suspicion and surmises without any cogent material to controvert the evidence filed by the assessee in support of the claim. Further, the AO has also failed to establish that the assessee has brought back his unaccounted income in the shape of long term capital gain. Hence we delete the addition made by the AO on this account. - Decided in favour of assessee