Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (6) TMI 702 - AT - Income TaxLong Term Capital Gain - penny stock - AO assessing the sale proceeds of shares as undisclosed income - HELD THAT:- AO has also nowhere in the assessment order referred to any material which can prove the complicity of assessee in the alleged accommodation entry operation. If the assessee has taken advantage of the price rise in an open manner through the transaction conducted in the official online system, no adverse inference can be drawn against the assessee. AO has referred to a SEBI order for drawing adverse inference. It is noted that the said SEBI order has been revoked. As per the Ld. AR the AO/CIT(A) was not justified in invoking the provisions of section 68 in regard to the sale proceeds of shares. There is no evidence on record to disbelieve that the assessee sold shares through registered Stock Exchange and stock broker. The assessee produced all evidences to explain the source of the amounts received by the assessee from the brokers. AO was not justified in assessing the sale proceeds of shares as undisclosed income. So, taking note of the documents referred to in para 4 (supra) and the facts discussed above and in view of the above ratio in a similar case in the case of M/s KAFL, reverse the orders of the lower authorities and allow the claim of assessee.
|