Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (6) TMI 925 - AT - Income TaxBogus LTCG - penny stock purchases - genuineness of claim of exempt income u/s 10(38) of the Act from Long Term Capital Gain ( In short ‘LTCG) arising from sale of equity shares - HELD THAT:- We note that the original purchase of equity share of Conart Traders Limited was made on 17.9.2011 and this company was subsequently merged to “M/s Sunrise Asian Limited” by the order of Hon'ble Bombay High Court and assessee received the converted equity shares of “M/s Sunrise Asian Limited” in their Demat account. Thereafter during the year under appeal the shares were sold through recognized stock exchange at the price appearing on the portal of the exchange. The shares were transferred from Demat account and consideration was received. All the evidences in support of above stated transactions have been filed before the lower authorities and their genuineness are not in doubt. As relying on Dipesh Ramesh Vardhan [2020 (8) TMI 405 - ITAT MUMBAI] “Sunrise Asian Limited” is neither a penny stock nor a paper company, are of the considered view that as all the five assessee(s) namely Kumari Ayushi Nyati ,Smt. Vijay Nyati, Shri Vijay Kumar Radheshyam Nyati (HUF), Shri Manish Kumar Radheshyam Nyati (HUF), Smt. Mamta Nyati have discharged necessary onus casted upon them in terms of claim of exemption of Long Term Capital Gain u/s 10(38) of the Act by establishing the genuineness of transaction of purchase and sale of shares and satisfying the requisite conditions specified therein and the Long Term Capital Gain so arisen has been rightly claimed as exempt u/s 10(38) of the Act. Since we have held the transaction of Long Term Capital Gain as genuine no addition for estimated brokerage expense is thus called for in the case of Miss. Ayushi Nyati. We therefore allow the common issues raised in all the instant appeals in favour of the assessee(s) and set aside the order of Ld. CIT(A) and allow the claim of LTCG exemption u/s 10(38) of the Act from sale of equity shares of “SAL” and delete the addition. - Decided in favour of assessee.
|