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2011 (12) TMI 509 - AT - Income TaxUnexplained cash credit u/s.68 - Held that:- Assessee has proved the purchases as well as the sales transactions. The shares have been sold through BSE and it is not alleged that these transactions are also off market. All these facts clearly prove that the transactions are genuine and the same cannot be doubted unless and untill the other participants like depository known as Action Financial Services (India) Ltd. is also proved to be bogus or in connivance with the Penny Stock scam and even the sale conducted through Anugrah Stock and Broking Pvt. Ltd. is proved to be bogus. In our opinion, when overwhelming documentary evidence is available to prove the purchase and sale transactions part of which has already been accepted by the revenue in A.Y 2004-05, then a mere statement by the broker who has sold the shares to the assessee that this was an accommodation entry cannot lead to a conclusion that the whole transaction was bogus. In these circumstances, we are of the view that the sale and purchase of the shares stand proved and should be assessed under the head capital gains. Disallowance of 5% commission on the bogus transfer of purchase and sale of shares - Held that:- Firstly, there is no evidence on record to show that any amount or premium was paid for entering into in this transaction. Secondly, since we have already accepted the transactions to be genuine, therefore, this issue becomes infructuous and no addition can be made on account of 5% premium. In these circumstances, we set aside the order of the ld. CIT(A) and hold that the assessee has entered into genuine transaction of purchase and sale of shares.
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