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2016 (4) TMI 586 - AT - Income TaxTreatment of shares purchased - LTCG - holding period - claim exemption under section 10 (38) - Held that:- Date of allotment is the date of acquisition of the shares in question and not date on which the same were credited to demat account. It has come on record that assessee’s holding period in question is of more than one year. Acquisition of Equity shares can be from public issue, purchase from the market or preferential allotment as per Sebl guidelines. Mature of acquisition of shares will not change the characters of Equity shares. Since assessing officer denied appellant the said exemption only on the ground that assessing officer did not sale Equity shares, such denial of exemption is based on wrong interpretation of facts and accordingly not sustainable. Equity shares allotted on preferential basis will not become preference shares. Preference shares are separate class of shares as per company's act and the same cannot be confused with preferential allotment of Equity shares. Accordingly the very basis of assessing officer's action of denying exemption to the assesse is wrong, therefore it is held that appellant is entitled to claim exemption under section 10 (38) since what was sold was Equity shares. Accordingly the addition made by the assessing officer is deleted. See Aditi J. Vyas [2011 (7) TMI 1201 - ITAT AHMEDABAD]. The Revenue is unable to draw a distinction on facts or law. We accordingly decide the issue in assessee’s favour on merits.
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