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2014 (5) TMI 432 - AT - Income TaxSTCG treated as income from undisclosed sources – Genuineness of trading of scrip - Held that:- The SEBI has analysed and investigated the credibility and the reliability of Karuna Cables Ltd. and also the possible fraudulent practice of hiking the share value in the stock exchange by leaps and bounds - SEBI order is only a credible information which can only go to create a doubt, but after having received such information, it was incumbent upon the AO to carry out necessary enquiry in the case of the assessee, as to whether the shares have been purchased and the amount which has been received in the bank account of the assessee is also fictitious - the SEBI order has recognised that Karuna Cables Ltd. was a listed company in BSE and NSE and it has also accepted that its share price has arisen from Rs. 22.40 per share to Rs.159 per share during the period. Any transaction has been undertaken by any person in the open market, then it cannot be held that such person was in connivance with the said company - In the entire assessment order, the AO has only spoken about general modus operandi and the order of the SEBI without carrying out any independent enquiry to prove that the assessee has not made any sales or any unaccounted money has been routed through this channel - What is apparent has to be taken as real, unless any material or evidence has been brought on the record to prove the contrary - the short term capital gain shown by the assessee cannot be held to be non-genuine so as to be taxed under the head “income from other sources” - Decided in favour of Assessee.
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