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2012 (5) TMI 647 - AT - Income TaxUnexplained Cash Credits u/s 68 - The client code shown by the CSE and as provided by the assessee varied and on this basis, the AO held that the purchases shown by the assessee were not genuine, therefore, the sale proceeds were bogus/sham - HELD THAT:- Revenue authorities have heavily relied on the discrepancy pointed out by CSE, regarding client code, but at no point of time the revenue authorities have been able to prove that the sale of the impugned shares was bogus/sham. We are unable to sustain the additions primarily on the point that the credits in the books of the assessee are on account of sale of a commodity (shares), which is duly reflected in the DMAT account, both of which cannot be challenged. We are in full agreement with the argument of the AR that even if the sale by any chance could not be effected through broker, even then the sale would remain sale, till the time it is not proved otherwise that these were not conducted through regular channels. The burden of proof shifts on the department, which the revenue authorities have failed. Making an addition on conjectures cannot be expected to be sustained. Therefore, additions by AO are to be deleted. Sale Proceeds of Shares - Credits u/s 68 or Not? - AO disallowed the claim of loss incurred on sale of shares - HELD THAT:- As the sales of shares are not bogus, sale proceeds of the shares are not to be treated as credits u/s 68. Thus, the loss on the sale of shares is allowed. Decision in favour of Assessee.
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