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2019 (3) TMI 156 - AT - Income TaxBogus Long Term Capital Gain (LTCG) - penny stock - addition u/s 68 - unaccounted sale of shares - genuineness of the purchase and sale transactions of shares - AO denying the LTCG claim relying on Investigation Wing’s general report and looking at the fundamental financials of M/s. UIL was of the opinion that the shares of M/s. UIL cannot fetch such high astronomical value per share - HELD THAT:- Assessee after purchasing the share of M/s. BREPL had taken possession of the share certificates which are evident from the bills of the respective parties and payments were made through account payee cheque. After the amalgamation of M/s. BREPL with UIL, the assessee had sold the shares of M/s. UIL through Bombay Stock Exchange. We note that the assessee had made payment of STT of the said scrips. In the light of the aforesaid documents, the assessee had discharged its burden of proving the genuinity of the transactions. We note that the AO/Ld. CIT(A) has not found fault with the aforesaid documents. AO failed to bring on board any material to suggest that the assessee had made cash payment to the purchaser of M/s. UIL from assessee which happened in the electronic platform of BSE under the strict watch of SEBI. Since there is no evidence/material to suggest leave alone substantiate the modus operandi as suggested by the general report of Investigation Wing of the Department against the assessee, the claim of assessee of LTCG on sale of shares of M/s. UIL cannot be disallowed - Decided in favour of assessee.See PRAKASH CHAND BHUTORIA VERSUS ITO, WARD-35 (1) , KOLKATA [2018 (7) TMI 46 - ITAT KOLKATA] - Decided in favour of assessee.
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