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2014 (5) TMI 881 - AT - Income TaxDeletion of LTCG as non-genuine - transactions in shares - Deletion of undisclosed commission paid for arranging accommodation entries Held that:- The assessee furnished certain additional evidences under Rule 46A of the I.T. Rules, those evidences could not be furnished before the AO, but those were relevant to decide the controversy - CIT(A) forwarded those additional evidences to the AO for his comment - Additional evidences furnished by the assessee were examined by the learned CIT(A), who also considered the remand report of the AO and categorically stated that the assessee furnished complete details of the transactions of the shares i.e statement of demat account, list of share trading, quotations of Madhya Pradesh Stock Exchange, certificate of Registrar of Companies, which clearly proved that the assessee entered into the transaction and the sale of the shares of M/s Suma Finance & Investment Ltd., which were listed with Madhya Pradesh Stock Exchange was affected to demat account - CIT(A) also verified that the sales proceeds had been received through banking channel and that any sale of the shares was not possible through demat account, if the shares were not listed in some stock exchange. The assessee was having proper demat account and sold the shares which were listed in the Madhya Pradesh Stock Exchange, the sale proceed received by the assessee through bank channel was not doubted by the AO - The purchase of the shares was through a broker and nothing is brought on record to substantiate that the said broker was not in existence at the relevant time when the purchases were made - the transactions entered into by the assessee was a genuine transaction and as the shares were purchased on 04/04/2003, which were sold on 10/06/2004, the holding period of the shares was more than 12 months as such the profit earned by the assessee on account of sale of shares, which were held for more than 12 months was long term capital gain there was no infirmity in the order of the CIT(A) on the issue. CIT(A) has stated that the brokerage was deducted from the share consideration by the broker and only balance amount was paid to the assessee through demand draft - The observation of the CIT(A) was not rebutted - the CIT(A) has rightly deleted the addition on account of commission/brokerage made by the AO on the basis of presumption - CIT(A) rightly deleted the additions made by the AO and there was no valid ground to interfere with the of the CIT(A) Decided against Revenue.
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