Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (10) TMI 428 - AT - Income TaxSale proceeds of shares treated as income from other sources Genuineness of transaction - Held that:- Assessee has filed necessary documents evidencing the purchase of shares as well as getting them transferred in its name and later on dematerialized form through HDFC Bank and subsequent sale - AO did not doubt sale of shares through stock exchange - transaction of sale of shares results in capital gain only As decided in The Income Tax Officer Versus Smt. Aarti Mittal And Others [2013 (11) TMI 968 - ITAT HYDERABAD] wherein Arun Kumar Agarwal (HUF) & Others [2012 (8) TMI 398 - JHARKHAND HIGH COURT] was followed - 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 assessee's transactions are genuine transactions - In the absence of any evidence on record that assessee has indulged in making adjustment entries the contentions of the AO which is based on presumptions and conjectures cannot be accepted - capital gains earned by the assessee is to be taxed as such and AO erred in considering the entire sale proceeds as income from other sources - AO is directed to accept the gain as long term capital gain Decided in favour of assessee.
|