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2019 (2) TMI 704 - AT - Income TaxAddition u/s 68 - Long-Term Capital Gain on sale of shares holding it to be a bogus transaction - Held that:- In this case, the shares have been directly allotted by the company and the payment has been made through account payee cheque duly disclosed by the assessee in the earlier year and said purchase of shares is evidenced not only from the bank statement but also by the allotment of shares. Thus, possession of the shares is not in doubt at all because same is also reflected in Demat account maintained with NSDL. Not only that, the sale of shares is also evidenced from transaction undertaken through registered stock at a specific trade time in BSE and after the sale of shares, the net receipts have been credited to the assessee’s bank account. The nature of the transaction is clearly purchase and sale of shares and the source of the credit, from the material facts on record are quite evident that it is from the sale of shares. Once, no material information has been brought on record to convert these transactions then it is very difficult to treat the sale proceeds of the shares as unexplained cash credit to be added under deeming provisions of section 68. There is no finding or any whisper in the impugned orders that some unaccounted money has been routed through some accommodation entry provider for getting the bogus long-term capital gain. When there is a concurrent finding on similar set of facts in the case of assessee’s husband, then as a matter of precedent same needs to be followed. In any case, independently also in view of the material facts on record no reason to sustain the action of the AO without any contrary material brought on record by the AO to hold that the said transaction is not genuine. AO u/s 68 is directed to be deleted and assessee’s claim for exemption u/s 10(38) on long term capital gain is allowed. - Decided in favour of assessee.
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