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2019 (12) TMI 811 - ITAT GUWAHATIBogus LTCG/losses derived from transfer of shares - Unexplained cash credits u/s 68 - Diversified views - HELD THAT:- Addition on involving an assessee’s profits derived from sale of shares can be declined only in absence of the supportive evidence on record whereas hon’ble Bombay high court has gone by circumstantial evidence. Rely on the evidence produced by the assessee in support of its claim and base our decision on such evidence and not on suspicion or preponderance of probabilities. No material was brought on record by the AO to controvert the evidence furnished by the assessee. Under these circumstances, we accept the evidence filed by the assessee and allow the claim that the income in question is Long Term Capital Gain from sale of shares and hence exempt from income tax. Hon’ble high court’s have adopted varying opinions qua correctness of identical long term capital gains. In other words, hon’ble Calcutta high court is of the view that such an addition on involving an assessee’s profits derived from sale of shares can be declined only in absence of the supportive evidence on record whereas hon’ble Bombay high court has gone by circumstantial evidence. We quote hon’ble apex court’s judgment in CIT vs. Vegetable Products [1973 (1) TMI 1 - SUPREME COURT] in these peculiar facts and adopt the view of hon’ble Calcutta high court in taxpayer’s favour. We further make it clear that hon’ble jurisdictional high court has not decided the issue till date. The impugned additions are deleted therefore. - Decided in favour of assessee.
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