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2011 (2) TMI 1527 - AT - Income TaxUnexplained/Undisclosed Long Term Capital Gain - deletion of addition - In that case the assessee claimed Long Term Capital Gain and claimed exemption u/s 054EA. The LTCG was shown on account of sale of shares through the brokers. The assessee submitted the copies of bills, share certificates, contract notes etc. during the course of assessment proceedings alongwith details of DD through which the sale proceeds has been received. It was also pointed out that the purchases were made through broking concern M/s. JRD Stock Brokers Pvt. Ltd. The A.O. noticed that the shares were purchased @ ₹ 4/- per share and sold @ ₹ 65/- to ₹ 84/- per share. The A.O. was of the view that the transactions were not genuine and are only accommodation entries. The broker pointed out that he was engaged in giving bogus entries for the purchase and sale of the shares on commission basis. He, therefore, made the addition. The assessee went in appeal before the CIT(A). HELD THAT:- According to the CIT(A), no defect in share transactions being made by the appellant and as such no adverse inference is drawn. Appellant had done the same as would be done by any person with a prudent mind in order to sell his commodity. It is evident from the record that the AO failed to establish the nexus between the sale proceeds of the shares and so called unaccounted money of the appellant which according to him is mere a bogus entry taken from the broker. Neither the statement of the broker or any other documentary evidence is on record from which it could be established that the appellant had taken entry from the broker M/s J.R.D Stock Broker (P) Ltd. Thus in view of the facts and the law, I hold that on merit the addition is wholly unjustified and is hereby deleted. Therefore, we are of the view that the CIT(A) was right in conclusion that the assessee has dealt in these shares and these transactions cannot be held bogus. The deletion of addition is confirmed. Hence, the assessee has been successful in proving the long term capital gain earned by him in this case. He has also established that he is exempt from tax qua long term capital gains as has been claimed.
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