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2021 (9) TMI 540 - AT - Income TaxReopening of assessment u/s 147 - Bogus LTCG - unexplained cash credit u/s.68 - income chargeable to tax had been escaped assessment on account of exemption claimed u/s.10(38) of the Income Tax Act, 1961, in respect of long term capital gain derived from sale of shares of certain companies - HELD THAT:- As assessee has filed relevant documents including contract note issued by stock broker, as per which purchase and sale of shares were through online. The assessee has paid consideration for purchase of shares by cheque and had received consideration for sale of shares by cheque. AO has not made any adverse comments on the evidences filed by the assessee, but he has disbelieved documents filed by the assessee for simple reason that broker was kept under watch list by the SEBI for fraudulent and unfair trade practices relating to Securities Market Regulations, 1995. Basis on which the AO has concluded his finding to hold the assessee is a beneficiary of bogus long term capital gain is not supported by any corroborative evidences - AO has predominantly went on the basis of theory of human behavior and preponderance of probabilities for the reason that the assessee was never involved in purchase and sale of shares, but has done isolated transaction of purchase and sale of a particular company . The said finding of the AO is contrary to facts, because, the assessee was a regular investor in shares which is evident from Demat account furnished before us, as per which along with this script, the assessee had purchased and sold number of other scripts. AO as well as CIT(A) were erred in treating consideration received for sale of shares as unexplained cash credit u/s.68 of the Act. Hence, we direct the Assessing Officer to delete additions made u/s.68 - Decided in favour of assessee.
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