Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2010 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2010 (2) TMI 1157 - AT - Income TaxBogus LTCG - Disallowance of exemption claimed u/s. 10(38) - unaccounted money converted into accounted money - validity of the off market share transactions - AO came to the conclusion that the entire transactions i.e. the purchase and sale of shares are part of accommodation entry of sale by the assessee - CIT(A) deleted addition HELD THAT:- For off market transactions we find that the issue is covered by the decision in the case of Mukesh R. Marolia [2005 (12) TMI 457 - ITAT MUMBAI] wherein it has been held that off market transaction is not a unlawful activity and there is no relevance in seeking details of share transaction from stock exchange when the sale was not on stock exchange and relying upon it for making addition. Sale proceeds have been paid to the assessee through the funds provided by the assessee - We find that the assessee has filed relevant documentary evidence before the AO but the AO has failed to consider the same. The CIT[A] in his order has considered the said evidence and has come to the conclusion that the share transactions are genuine. AO could have verified from the Registrar of companies as to whether the shares have been transferred and the names of the shareholders in whose names shares have been transferred - Therefore, we do not see any reason to interfere with the order of the CIT[A] and the same is upheld. Revenue’s appeal is dismissed.
|