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2023 (5) TMI 1060 - AT - Income TaxBogus LTCG - Share transactions - undisclosed income - Denying the claim of long term capital gain - HELD THAT:- It is the date of broker’s note that should be treated as date of transfer in cases of sale transactions of securities, provided such transactions are followed up by delivery of shares and also transfer deeds. Similarly, in respect of purchasers of securities, holding period shall be reckoned from the date of broker’s note for purchases on behalf of investors. Contract notes clearly show the date of purchase as 04.05.2005 and 10.05.2005. Purchases are duly reflected in the financial accounts for F.Y. 2005-06 ending on 31.03.2006. Merely because payments were made to the brokers on subsequent dates would not make the entire gains as income from undisclosed sources, not by any stretch of imagination. Since the purchases and sales of shares have not been disputed, and are supported by demonstrative evidences, we do not find any logic/ justification in treating the gain as income from undisclosed sources. We direct the Assessing Officer to consider the gains as long term capital gains as per provisions of law. Decided in favour of assessee.
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