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2018 (4) TMI 1839 - AT - Income TaxBogus LTCG - exemption u/s 10(38) - HELD THAT:- Shares were allotted in a private placement by the company at par which were dematerialized and thereafter sold by the assessee. The finding of the AO in the case of the assessee is based merely on suspicion and surmises without bringing any cogent material to establish that the assessee has introduced his unaccounted income in the shape of long term capital gain. Transaction in the case is not a trading of the shares through brokers but it was an allotment by the company in a private placement and thereafter the shares were dematerialized and duly reflected in the demat account of the assessee, therefore, the holding of the shares in the demat account and subsequently transfer of the same from the demat account cannot be doubted and consequently the transaction of sale cannot be held as bogus. In the absence of any material to show that the assessee has paid the amount of capital gain as his unaccounted income to convert the same to the exempt income, the entire transaction of sale of shares cannot be held as bogus. This issue in favour of the assessee and allow the claim of the assessee. The orders of the authorities below qua this issue are set aside. - Decided in favour of assessee.
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