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2021 (6) TMI 491 - AT - Income TaxBogus LTCG - Penny stock purchases - genuineness of claim of LTCG u/s. 10(38) - HELD THAT:- As in the case of assessee also there was no evidence produced by the Ld. AO to show that there was an agreement between assessee and any other party which are alleged to be involved in providing accommodation entry. Thus respectfully following the ratio laid down in the case of Krishna Devi [2021 (1) TMI 1008 - DELHI HIGH COURT] and Swati Luthra [2019 (7) TMI 526 - ITAT DELHI] which is squarely applicable on the facts and issues raised before us, are of the considered view that the claim of LTCG u/s. 10(38) from sale of equity shares of Terbotech Engineering Limited is genuine and the assessees is entitled to claim the benefit. Thus, no addition was called for u/s. 68 of the Act for unexplained cash credit. We, further hold that the assessee is regularly dealing in equity shares as an investor and as its main source of income salary and other from other sources and the frequency of transactions in purchase and sale of shares is less, it cannot be held to be carrying on business of purchase/sale of shares as an adventure in nature of trade. - Decided in favour of assessee.
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