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2017 (4) TMI 964 - AT - Income TaxClaim of long term capital gain from sale of shares and treating the same as income from other sources - Held that:- It is not in dispute that these shares were finally dematerialized and shown in the demat account of the assessee however, the actual date of dematerialization entry in the demat account is not proved by the assessee. The request for dematerialization dated 08.12.2005 itself is not a conclusive proof of converting the shares into the demat account and further the details filed by the assessee regarding the demat account also do not reflect the entry of shares in the demat account. Only the sale transaction as on 27.02.2007 has been reflected in the demat account. Therefore the transaction of sale is no doubt proved by the assessee. But, the date of purchase is still not clear. Thus the only question which remains to be ascertained is the date of dematerialization of these shares and therefore the market price of the shares on the date of dematerialization would be considered as purchase consideration of the shares and consequently the sale on 27.02.2007 may result short term capital gain or long term capital gain as case may be depending upon the date of dematerialization of the shares. Further the quantum of capital gain is also depending on the purchase price which is the prevailing price on the date of dematerialization. Accordingly, this issue of computation of capital gain whether it is short term or long term as well as the purchase price on the date of dematerialization is remanded to the record of the AO for proper verification. The AO is specifically directed to find out the actual date of dematerialization of shares and the prevailing market price of the shares on the date of dematerialization to be considered as purchase consideration and then compute the capital gain. Since the facts are identical in all the cases therefore the issue in all three cases is set aside to the record of the AO. - Appeals of the assessee allowed for statistical purposes.
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