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2018 (12) TMI 561 - AT - Income TaxBogus capital gain on sale of long term shares - exemption under section 10(38) denied - addition made on the suspicion and surmises - Held that:- As decided in SHRI MEGHRAJ SINGH SHEKHAWAT VERSUS THE DCIT, CENTRAL CIRCLE-3, JAIPUR [2018 (3) TMI 1639 - ITAT JAIPUR] Assessee has produced the relevant record to show the allotment of shares by the company on payment of consideration by cheque and therefore, it is not a case of payment of consideration by in cash. But the transaction is established from the evidence and record which cannot be manipulated as all the entries are part of the bank account of the assessee and the assessee dematerialized the shares in the D-mat account which is also an independent material and evidence cannot be manipulated. The holding of the shares by the assessee cannot be doubted and the finding of the AO is based merely on the suspicion and surmises without any cogent material to show that the assessee has introduction his unaccounted income in the shape of long term capital gain. The order of the Assessing Officer treating the long term capital gain as bogus and consequential addition made to the total income of the assessee is not sustainable. Hence, we delete the addition made by the AO on this account. - decided in favour of assessee.
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