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2019 (2) TMI 1421 - AT - Income TaxUnexplained income u/s. 68 - penny stock - denial of exemption of long term capital gains arising on transfer of shares claimed u/s. 10(38) - HELD THAT:- Transactions claimed by the assessee whether real or sham, requires a revisit by the AO. Similar directions as given in the cases of Vimalchand Gulabchand, Praveen Chand, Gatraj Jain & Sons (HUF) and Mahendra Kumar Bhandari [2018 (4) TMI 701 - ITAT CHENNAI], read alongwith the directions given in the case of Heerachand Kanunga [2018 (6) TMI 1329 - ITAT CHENNAI] are given herealso. Useful reference may be made to the law laid down in the case of CIT vs. Sunita Dhadda [2018 (3) TMI 1610 - SUPREME COURT OF INDIA] while affirming a judgment of Hon’ble Rajasthan High Court where the importance of providing an opportunity to cross examine the witness has been stressed. Their lordship held that this was an important constituent of natural justice. Only after all the steps required under law is complete, it can be ascertained whether claim of capital gains was bogus or not. We therefore set aside the orders of the lower authorities and remit the issue back to the file of the ld. Assessing Officer for consideration afresh in accordance with law. - Appeal of the assessee is allowed for statistical purposes.
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