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2019 (7) TMI 529 - AT - Income TaxBogus LTCG - penny stock - Addition u/s 68 - exemption u/s 10(38) denied - HELD THAT:- We note that the assessee has purchased the shares through online through registered brokers and sold the same also in the Bombay Stock Exchange through the registered brokers and the shares were duly dematerialized and the purchase/sale consideration was through the banking channel. We note that the Tribunal had the occasion to consider the claim of the assessee in the same scrips (M/s. TTML) in a similar case that of ROHIT JALAN VERSUS ITO, [2019 (5) TMI 1377 - ITAT KOLKATA] wherein the Tribunal allowed the claim holding that M/s. TTML scrips are not bogus and it was a genuine scrip. Tribunal (supra) relied on the decisions of the Hon’ble Supreme Court in the case of Andaman Timber Industries [2005 (3) TMI 763 - SC ORDER] and considering the facts in totality, the claim of the assessee cannot be denied on the basis of presumption and surmises in respect of penny stock by disregarding the direct evidences on record relating to the sale/purchase transactions in shares supported by broker’s contract notes, confirmation of receipt of sale proceeds through regular banking channels and the demat account. Accordingly, directed the A.O. to treat the gains arising out of the sale of shares under the head capital gains- “Short Term” or “Long Term” as the case may be. The transactions were all through account payee cheques and reflected in the books of accounts. The purchase of shares and the sale of shares were also reflected in Demat account statements. The sale of shares suffered STT, brokerage etc. In the facts and circumstances of the case, it cannot be held that the transactions were bogus - Decided in favour of assessee.
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