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2021 (10) TMI 746 - AT - Income TaxAddition u/s 69 - assessee had purchased immovable property as unexplained - creditworthiness of the company namely M/s Seven Star Developers Township Pvt. Ltd could not be established - HELD THAT:- Revenue authorities were expected to appreciate the reasonable explanation put forth by the assessee and the evidences produced about the nature and source of investment, however, in this case, the revenue authorities made additions merely on the basis of surmises and conjectures as well as without any supporting evidence which they were not entitled to do so. Although, in the remand report, the A.O. has expressed doubts regarding the financial position of the company but be that as it may, the fact still remains that no property was purchased in the name of assessee and no payments were made by the assessee in his personal capacity and the said fact has also been admitted by the A.O. in his remand report that out of total payment of ₹ 1,97,03,295/- claimed to be paid to the land owners namely Sh. Rajendra Singh, Dakh Kanwar and Bheru Singh, the payments to the extent of ₹ 34,50,000/- could only be verified from the two bank accounts and the balance of ₹ 1,62,53,295/- remained unverified - A.O. merely presumed that such payments might have been made/paid by the assessee - no documentary evidence has been placed on record to prove the said contention of the A.O. Thus, the A.O. merely acted on the basis of surmises and conjectures, therefore, the additions made by the A.O. are not tenable in the eyes of law. Therefore we are of the considered view that no liability can be fastened upon the present assessee U/s 69 of the Act. Therefore, we direct the A.O. to delete the said addition. Thus, these grounds of appeal raised by the assessee are allowed. Bogus LTCG - Unexplained cash credit after disallowing claim of the assessee of exemption u/s 10(38) - Penny stock purchases - HELD THAT:- In the present case, the assessee had satisfied all the conditions in respect of claiming exemptions u/s 10(38) of the Act as mentioned for claiming exemption, therefore, the shares sold by the assessee are entitled for long term capital gain. The assessee had furnished all the required evidence for the purchase of shares as well as sale of shares which inter alia included copies of bills for purchase of share and contract notes for sale of share, Demat account and bank statement evidencing payments for purchase of shares and receipts against sale of shares by account payee cheques - As relying on MEENU GOEL VERSUS ITO, WARD-31 (1) , NEW DELHI [2018 (3) TMI 1020 - ITAT DELHI] we are of the view that the assessee is entitled for exemption u/s 10(38) of the Act. Accordingly, we set aside the order passed by the ld. CIT(A) and direct the AO to grant exemption to the assessee u/s 10(38) of the Act - Decided in favour of assessee.
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