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2023 (8) TMI 434 - AT - Income TaxBogus Short term capital loss - accommodation entry transactions - HELD THAT:- We note that one prudent men will indulge in the purchase and sale of securities where the ulterior motive is not to earn the capital gain. Thus, the blame of the lower authorities considering the assessee as Coterie of the person calming the exempt capital gain is not correct based on the facts. It is also noted from the available record that the assessee had purchased shares through SEBI registered broker namely Hem Securities Ltd and the same were not physical form as it would be in the case of the penny stock companies and also there is not split corporate action. Thus, we note that the assessee had purchased the shares through contract note and sold all the shares through contract note. It is also noteworthy to mention that shares purchased by the assessee were credited in his D Mat account and they were transferred accordingly. As also noted from the available records that all the transactions for purchase and sale of shares through the broker Hem Securities were settled only via banking channel. There appears no ambiguity in the sale and purchase of shares through the SEBI brokers Hem Securities and all the transactions took place through banking channel and on the transactions of purchase and sale of Shares, STT had been paid having time and date stamp. Hence, taking into consideration of the above facts and circumstances of the case, we do not concur with the findings of the ld. CIT(A) on the issue in question. Ground No. 1 of the assessee is allowed. Also as purchase and sale of shares as bogus transactions not confirmed there is no question arises as to making addition by the AO on account of commission paid by the assessee. Hence, the Ground No. 2 of the assessee is allowed.
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