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2019 (10) TMI 386 - AT - Income TaxBogus LTCG - issue of shares in pursuant to scheme of arrangement. HELD THAT:- The assessee furnished before us the letter received from Kailash Auto Finance Ltd. intimating about the issue of shares in pursuant to scheme of arrangement. The order passed by the Hon’ble Allahabad High Court approving amalgamation of Kailash Auto Finance Ltd. with Careful Projects Advisory Ltd. and Panchsul Marketing Ltd. The assessee submitted contract note evidencing sale of shares Kailash Auto Finance Ltd.. Evidence of receipts of sale proceeds of shares from the broker by way of bank. The assessee also submitted the broker’s ledger account and demat account statement issued by the broker viz. JRK Stock Broking Pvt. Ltd.. By submitting these plethora documents and evidences, the ld. Counsel for the assessee submitted before us that the assessee has proved the genuineness of the long term capital gain. The ld. Counsel for the assessee has submitted that where the transaction is done within the four corners of the law then it should not be disallowed. The ld. Counsel submitted that the bank statement, brokers note, contract note, demat statement submitted by the assessee before the Assessing Officer were not found by the Assessing Officer as false / untrue. Assessing Officer failed to find any defect in the main documents submitted by the assessee(i.e the bank statement, contract notes, demat account, bills / invoices of the shares) therefore, the transaction done by the assessee is genuine, hence the addition should be deleted. - Decided in favour of assessee.
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