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2011 (10) TMI 645 - AT - Income TaxAddition u/s 68 - unexplained cash credit - Held that:- Evidence and explanation of the assessee support the case of the assessee that the assessee entered into genuine transaction. The details noted above clearly prove the sources of sales of the shares; therefore, no addition was required to be made u/s 68 of the IT Act. CIT(A) rightly deleted the addition on account of unexplained cash credit u/s 68 of the IT Act. Nature of gain - STCG OR LTCG - Held that:- Instead of considering the transaction noted in the demat account the revenue authorities should have followed the above circular of the Board and according to the same the date of contract shall be treated as the date of transfer. Since the revenue department did not dispute purchase of the shares from M/s. Swan Securities Pvt. Ltd. in the scrutiny assessment of preceding assessment year 2006-07, therefore, the assessee is able to establish that shares have been purchased in April, 2005. Therefore, instead of short term capital gains, the learned CIT(A) should have treated the gains as long term capital gains. The order of the learned CIT(A) to that extent is, therefore, liable to be set aside. The order of the learned CIT(A) to that extent holding transaction to be short term capital gain is set aside and we direct the AO to accept the claim of the assessee for long term capital gains.
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