2019 (1) TMI 298 - ITAT KOLKATA

Bogus LTCG - Addition u/s 68 - unexplained cash credits addition - Held that:- Coming to Revenue’s arguments that department had searched / surveyed various entry operators alleged to have engaged in giving bogus LTCG regarding very scrip, put a specific question to Mr.Bhattacherjee as to whether any of the said entry operators had ever quoted assessee’s name or not. The replies is received in negative.

Coupled with this, there is no substance in Revenue’s argument that similar addition(s) stand affirmed in various judicial precedents for the reason that sec. 68 addition is a factual issue requiring the taxpayer to prove the identity, genuineness and creditworthiness of the relevant sum credited. Thus make it clear that all these assessees have placed sufficient materials on record indicating them to have derived the impugned LTCG form sale of shares held in M/s Unno Industries Ltd. only. Delete the impugned addition(s) respectively. Brokerage commission disallowance, if any, thereupon shall automatic stood as a necessary corollary. - Decided in favour of assessee