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2016 (5) TMI 1414 - AT - Income TaxBogus share transactions - Reopening of assessment - intimation given by the investigation wing that the assessee was one of the beneficiaries of the fraudulent billings done by - Mr.Mukesh M Choksi who admitted being indulged in the fraudulent billing of shares and securities - Held that:- We find from the record that the assessee has purchased 12000 shares of M/s. Talent Infoways Ltd. for a total consideration of ₹ 17,417/- and the share certificates were received in the physical form which were dematerialized in the name of the assessee and ultimately sold on 29.3.2005. As assessee held the shares for more than 12 months and the gain resulting from the sale of shares was to be exempt under the Act as being long term under the relevant provisions of Act. The AO rejected the claim of the assessee on the basis of such statement and came to the conclusion that these transactions entered by the assessee were bogus as the same made through Mr.Mukesh Choksi and his associate concern. It is clear that the only basis of rejection of claim of the assessee was statement of Mr.Mukesh M Choksi given during the course of search and seizure action. Similar issue came up for consideration before the co-ordinate bench of the Tribunal in the case of Ulka Vijay Salvi (2015 (11) TMI 1724 - ITAT MUMBAI) under the identical facts and the tribunal decided the issue in favour of the assessee by holding that the sale and purchase can not be doubted just on the basis of statement of the third party. - Decided in favour of assessee.
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