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2013 (11) TMI 1318 - AT - Income TaxSale and Purchase of shares, not a bogus transactions – Income arising from purchase and sale of shares chargeable under head ‘Long term capital gains’ and not an undisclosed income - Shares were purchased as penny stocks at low price of 55 paise per share and the same were claimed to have been sold at Rs.40 per share and thereby the assessee has shown Long term capital gains of Rs.29,09,675 – Held that:- Examination has been done of the stock broker though which the assessee has purchased shares as well as from the stock broker to whom the assessee has sold the shares - Both the stock brokers have confirmed the transaction of purchase as well as sale - The assessee has also produced relevant documentary evidence in support of the transaction of purchase and sale - There is no finding or dispute on the point of prevailing price at the time of purchase or at the time of sale of shares - Shares of Blue Chip India Ltd. were duly shown in the balance sheet filed with the return of income for the A.Y. 2003-04 and, therefore, the assessee has discharged his onus to prove the holding of the shares and in the absence of any contrary evidence brought by the Assessing Officer on record, it cannot be said that the transaction of purchase shown by the assessee is not genuine – Reliance has been placed upon the case of CIT Vs. Jamnadevi Agarwal [2010 (9) TMI 81 - Bombay High Court]. From the documents produced, which were also in the possession of the Assessing Officer, shares in question were in fact purchased by the assessees on the respective dates and the company has confirmed to have handed over the shares purchased by the assessees. Similarly, the sale of the shares to the respective buyers is also established by producing documentary evidence. It is true that some of the transactions were off-market transactions. However, the purchase and sale price of the shares declared by the assessees were in conformity with the market rates prevailing on the respective dates as is seen from the documents furnished by the assessees. Therefore, the fact that some of the transactions were off-market transactions cannot be a ground to treat the transactions as sham transactions – Decided against the Revenue.
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