2019 (8) TMI 1322 - ITAT KOLKATA

Bogus LTCG - Addition u/s 68 - long term capital on sale of shares of M/s JIL and also the commission expenses as bogus - HELD THAT:- Contract notes in connection with sale of shares along with bank statement reflecting the receipt of sale consideration and demat statement were produced before the lower authorities and are available in the paper book page nos. 14 to 22. A.O. has nowhere in the assessment order referred to any material which can prove the complicity of assessee either in the price rigging or in the alleged accommodation entry operation. Nothing on record/assessment order could show that assessee was connected with M/s. Jackson Investments Ltd. or their promoters, directors and any other person who exercises any control over M/s. Jackson Investments Ltd. or any so called entry operator.

Other than adverse assumptions there is no evidence on record to disbelieve that the assessee sold shares through registered share and stock broker. The assessee had produced all evidences to explain the source of the amounts received by the assessee from the brokers and to corroborate the transaction in question. Thus I am of the opinion in the facts discussed supra, the AO was not justified in assessing the sale proceeds of shares as undisclosed income. Therefore, respectfully following the order of coordinate bench in Om Prakash Mundhra 2019 (3) TMI 559 - ITAT KOLKATA] and the finding of facts as stated in (supra) am inclined to set aside the order of Ld. CIT(A) and direct the AO not to treat the long term capital on sale of shares of M/s JIL and also the commission expenses as bogus and delete the consequential additions. Therefore, the appeal of assessee is allowed.