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2015 (7) TMI 766 - AT - Income TaxComputation of long-term-capital-gains - contention raised by the Department is that purchase date should be treated from the date of dematerialization i.e. when the shares were entered into D’mat Account - Held that:- Before the CIT(A), the assessee have contended that the shares of M/s. Buniyaad Chemicals Ltd. were transferred in the name of the assessee in April, 2001. This fact is also supported by certificate/letter dated 1st April, 2001 issued by M/s. Buniyaad Chemicals Ltd. through the assessee, wherein, 30,000 shares have been transferred in favour of the assessee. This inter-alia means that the assessee was in possession of the shares in April, 2001. Once the source of purchase have not been disputed and long-term-capital-gain is treated as short-term merely on the date of acquisition, then on strength of the certificate itself it goes to show that the assessee was the owner of the shares in the month of April, 2001 and hence, the sale of shares after June, 2002 is nothing but longterm- capital-gain, therefore, treating the gain on sale of shares as short-term-capital-gain by the AO as well as CIT(A) is not correct. The other observations that the source of purchase out of speculation profit is not proved may not be very significant as ultimately nothing has been brought on record as the shares were purchased only in the month of April, 2002 and transfer certificate by the company is not genuine. Accordingly, on merits itself we hold that that the gain in sale of shares is assessable under the head long-term-capital-gain. - Decided in favour of assessee.
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