2019 (10) TMI 975 - ITAT KOLKATA

Bogus LTCG - addition u/s 68 - sale of shares - It was pointed out by the ld AR that the A.O. has nowhere in the assessment order referred to any material which can prove the complicity of assessee in the alleged accommodation entry operation. According to Ld. AR, the AO/CIT(A) was not justified in invoking the provisions of section 68 of the Act in regard to the sale proceeds of shares.

HELD THAT:- the AO was influenced by an interim order of SEBI dated 29.03.2016, which the SEBI has withdrawn by later order dated 21.09.2017 by virtue of it all the restrictions imposed upon by the earlier order dated 29.03.2016 has been withdrawn, since SEBI could not find any infirmity in the scrips of M/s. KAFL.

Action of the Ld. CIT(A)/AO cannot be accepted, since the scrip of M/s. KAFL cannot be held to be bogus; and based on the finding of fact supra which are supported by documents which have not been adversely commented upon by AO/Ld. CIT(A) we are inclined to allow all the appeals of the assessee and direct the AO to allow the claim of LTCG on sale of scrips of M/s. KAFL in respect of all the assessees. See MANISH KUMAR BAID AND MAHENDRA KUMAR BAID VERSUS ACIT, CIR-35, KOLKATA [2017 (10) TMI 522 - ITAT KOLKATA] - Decided in favour of assessee.