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2014 (10) TMI 583 - HC - Income TaxAddition u/s 68 Income already shown as income under capital gains Genuineness of transaction of sale and purchase of shares Held that:- The Tribunal was rightly of the view that the assessee had manipulated the accounts - no sale or purchase of the shares was done by the assessee but only entries of the capital gains were given to the assessee on receipt of cash payment - since the assessee had only filed copy of sale and purchase bill and showed inability to produce the broker, the AO was right in conducting the enquiries on his own - the bogus capital gains have been generated by the assessee and, therefore, the quotations in a Gujarati Diary was of no help to the assessee - the assessee had not done any share business before financial year 2003-04 and after financial year 2004-05 in which he had earned capital gains of ₹ 51 lacs - the assessee had failed to prove the genuineness of the transaction of sale and purchase of shares - once the transaction of purchase and sale was found to be bogus then the sale proceeds had to be added as income of the assessee u/s 68 of the Act because the money received on the basis of bogus transaction had been credited by the assessee in the books of account which remained unexplained thus, the order of the Tribunal is upheld Decided against assessee.
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