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2023 (10) TMI 769 - ITAT MUMBAIAddition u/s 68 - bogus sale consideration received on sale of shares of listed shares - return of notices issued to two of the exit providers - HELD THAT:- AO has identified the purchasers of shares, which have been sold by the assessee and he issued notices u/s 133(6) to two persons. Since the said notices were returned back/not responded, the AO has doubted the sale transactions of shares. As it is pertinent to note that the assessee has sold the shares on the recognised stock exchange. It is not shown by the AO that the assessee was aware of the exit providers or part of the group involved in rigging the prices. Hence, mere fact of return of notices issued to two of the exit providers cannot be a ground to suspect the genuineness of sales, without bringing any other substantial evidence on record. We notice that AO has not found fault with any of the documentary evidences furnished by the assessee to prove the purchases and sale of shares. AO has not brought on record any material to show that the assessee was part of the group which involved in the manipulation of prices of shares. Hence, there is no reason to suspect the purchase and sale of shares undertaken by the assessee. Thus we are of the view that the decision rendered in the case of Shyam R Pawar [2014 (12) TMI 977 - BOMBAY HIGH COURT] and Ziauddin A Siddique[2022 (3) TMI 1437 - BOMBAY HIGH COURT] shall apply in the present case, since the AO has not established that the assessee was involved in price rigging and further the AO did not find fault with any of the documents furnished by the assessee. Thus sale consideration received on sale of shares cannot be assessed as unexplained cash credit u/s 68 of the Act and the long term capital gains declared by the assessee cannot be doubted with. Decided in favour of assessee.
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