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2016 (1) TMI 603 - AT - Income TaxAddition u/s 68 - genuineness of transactions of purchase and sale of shares - book entries taken for long term capital gains. - Held that:- As per provisions of Section 68 of the Act assessee has to prove the nature of credit appearing in the books and also identity, creditworthiness and the genuineness of the credits appearing in his books of accounts. In the case of assessee, the credit of ₹ 16,15,188/- was received by the assessee from the broker through whom the shares were sold. Therefore, the nature of credit in the books was explained. The identity of the share broker was also established by the assessee by filing the contract note and other details of M/s. Sushil Finance Consultants Ltd., through whom the shares were sold. The creditworthiness of the share broker was not doubted by the Assessing Officer. Further, the genuineness of the transactions i.e. the credits in the books of assessee was also explained as received on account of sale of shares by the assessee. The existence of shares of 150000 in the hands of assessee was also established by filing concerned demat account. Therefore, the conditions for making addition under section 68 were missing in the case of the assessee. In view of the above the CIT(A) was justified in observing that the addition made under section 68 of the Act are not justified and the same were rightly deleted by him - Decided in favour of assessee
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