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2020 (4) TMI 290 - AT - Income TaxBogus LTCG - Long Term Capital Gain on sale of listed equity share exempt u/s 10(38) - HELD THAT:- Assessee HUF and another HUF of the same family entered into similar transaction with the same company and earned astronomical return within a short span of time of one year and three months. The lower authorities analyzed the financials of the company whose shares were invested into, they do not speak anything except that the whole transaction are sham. Company has a meager turnover and minuscule profit. The regulators conducted the enquiry and found that the price of this company has been rigged. They also found that the route was preferential allotment of individual allottees and three different cooperates. The regulator also found the exit providers, the persons who funded the IPO, and the evidence of rigging of the price. All these culminated into an order dated 23 January 2017 by SEBI . Investigation wing of the income tax department also found with the statement of the brokers that the whole transaction is sham. The statement of the assessee itself did not give any credence to the mere documentary evidences produced by. Further more the honourable Delhi High Court has already decided on identical issue in case of Udita Kalra [2019 (4) TMI 834 - DELHI HIGH COURT] and Suman Poddar [2019 (9) TMI 1089 - DELHI HIGH COURT] which are against the assessee. Therefore, no merit in the appeal of the assessee and all six grounds of appeal challenging the same addition on different pretext are dismissed.
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