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2019 (6) TMI 1592 - AT - Income TaxAllowability of loss on share transactions - determination of ‘date of transfer’ and holding period for the purpose of computing the period for capital gains - HELD THAT:- Circular issued by the CBDT vide Circular No. 704 dated 28.4.1995 wherein it was clarified that the share transactions carried on by the parties , if followed by delivery of shares and transfer deeds, then the same would have to be accepted. Though this circular was issued in the context of determination of ‘date of transfer’ and holding period for the purpose of computing the period for capital gains, the analody drawn thereon could be utilized to the facts of the instant case. It is not in dispute that the assessee had traded in shares of Nirma Ltd in off-market but the same was subsequently followed by delivery of shares and transfer deeds. The sale of shares is made following First In First Out (FIFO) basis and it is pertinent to note herein that the opening balance of shares held by the assessee were never doubted by the revenue. No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. Hence the share transactions in respect of Nirma Ltd is to be considered as genuine and assessee had made profit in respect of this off-market transaction. Assessee had also submitted the statement giving details of purchase and sale of shares of Visual Soft Ltd along with copies of bills and contract notes, copies of demat statement and copy of price list from the stock exchange . No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. All these documents conclusively prove that the transaction carried out by the assessee is genuine. Assessee had also submitted the statement giving details of purchase and sale of shares of Elque Polyster Ltd along with copy of price list from the stock exchange. No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. All these documents conclusively prove that the transaction carried out by the assessee is genuine. We find that the assessee had also submitted the statement giving details of purchase and sale of shares of Global Tele Ltd along with copies of bills and contract notes and copy of price list from the stock exchange. No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. All these documents conclusively prove that the transaction carried out by the assessee is genuine. Assessee had also submitted the statement giving details of purchase and sale of shares of Penta Four Soft Ltd along with copies of bills and contract notes; copies of demat statement ; copy of trade file of NSEand copy of price list from the stock exchange (page 86 of paper book). No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. All these documents conclusively prove that the transaction carried out by the assessee is genuine. Assessee had also submitted the statement giving details of purchase and sale of shares of Ramco Systems Ltd along with copies of bills and contract notes. No deficiencies whatsoever were brought out by the ld DR before us with regard to these documentary evidences. All these documents conclusively prove that the transaction carried out by the assessee is genuine. We direct the ld AO to treat the net speculation loss as genuine loss and allow the same to be carried forward to subsequent years. Accordingly, the grounds raised by the assessee are allowed. Chargeability of interest u/s 234D - HELD THAT:- No interest u/s 234D of the Act could be charged on the assessee in the peculiar facts and circumstances of the instant case before us. We find that the ld CITA had followed this tribunal order which had attained finality. Hence we do not find any infirmity in the said order of the ld CITA . Accordingly, the grounds raised by the revenue are dismissed.
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