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2013 (11) TMI 968 - AT - Income TaxLong term capital gain - Purchase and sale of shares – Genuine transaction or not – Held that:- Following Arun Kumar Agarwal (HUF) & Others [2012 (8) TMI 398 - JHARKHAND HIGH COURT] - Where the share broker was found involved in unfair trade practice and was involved in lowering and rising of the share price, and any person, who himself is not involved in that type of transaction, if purchased the share from that broker innocently and bonafidely and if he show his bonafide in transaction by showing relevant material, facts and circumstances and documents, then merely on the basis of the reason that share broker was involved in dealing in the share of a particular company in collusion with others or in the manner of unfair trade practices against the norms of S.E.B.I and Stock Exchange, then merely because of that fact a person who bonafidely entered into share transaction of that company through such broker then only by mere assumption such transactions cannot be held to be a shame transaction. No suspicion can be raised when the shares were purchased years before the unusual fluctuation in the share price - The shares of some of the companies were purchased by the assessees even five years ago from the time of sale and those purchasers were already disclosed in the Balance Sheet of the assessee - The assessees had held the shares much prior to 12 months of the sale of the shares – Decided against Revenue.
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