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2016 (7) TMI 1476 - AT - Income TaxGain on sale of shares - LTCG OR busniss income - genuineness of claim - Held that:- Transactions of the assessee can by no stretch of imagination be considered as investment transactions. They are only make believe transaction. Hence no infirmity in the revenue taxing the receipt in this regard. The entire amount of the so called receipt of share sales could well also be treated as unexplained credit u/s 68 as it has all the ingredients of attracting the rigours of the said section. Section 68 of the I.T. Act provides that where any sum is found credited in the books of the assessee maintained for any previous year and the assessee offers no explanation about the nature and source thereof or the explanation offered by him is not in the opinion of the AO satisfactory, the sum so credited may be charged to income-tax as income of the assessee of that year. In the present case the assessee’s explanation that the said receipt is on account of investment in shares whereby share of ₹ 5/- of unknown company has jumped to ₹ 485/- in no time has been totally rejected by the authorities below. The assessee has not at all been able to adduce cogent evidences in this regard. There is no economic or financial justification for the sale price of these shares. The so called purchaser of these shares has not been identified despite efforts of the AO. The broker company through which shares were sold did not respond to queries in this regard. Hence the fantastic sale price realisation is not at all humanly probably, as there is no economic or financial basis, that a share of little known company would jump from ₹ 5/- to 485/- - Decided against assessee.
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