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2022 (1) TMI 919 - AT - Income TaxAddition u/s 68 - unexplained cash credit - Bogus LTCG - disallowance of long term capital gain resulting from sale of equity shares which was claimed as exempt under section 10(38) - HELD THAT:- We find that the assessee has sold 2,88,600 shares of M/s. S.R.K. Industries Ltd. at Bombay Stock Exchange through broker M/s. Vishesh Capital Pvt. Ltd. dated 16.12.2013 and 10.01.2014. The facts qua the purchase of these shares were already discussed hereinabove - assessee has filed before the AO the proofs of purchase and sale of these shares, payment through banking channel, receipt of sale consideration into assessee’s bank account, sale through registered brokers on stock exchange and D-mat account regarding the entries of purchase and sale of these shares etc AO has not found any defect in the documents submitted by the assessee, however, primarily relied on the report of investigation wing, Kolkata that the scrip is part of penny stocks and therefore are of bogus in nature - order of Ld. CIT(A) upholding the order of AO is not correct as the conclusion is merely based on the suspicious without bringing on record any concrete evidences to the contrary. As the long term capital gain which was earned through recognized stock exchange and is evidenced by the documentary evidences and mere fact that the scrip price has risen many times can not be sole factor for treating the same as bogus. We also note that the co-ordinate Bench of the Tribunal in the above two cases namely Smt. Geeta Khare vs. ACIT [2019 (5) TMI 1846 - ITAT MUMBAI] and Smt. Bhavna B. Kothari vs. ITO [2020 (9) TMI 491 - ITAT MUMBAI] the scrip involved was M/s. S.R.K. Industries Ltd. and the co-ordinate Bench of the Tribunal has held the long term capital gain to be genuine and not bogus. - Decided in favour of assessee.
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