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2024 (4) TMI 261 - AT - Income TaxBogus LTCG - exemption u/s 10(38) denied - addition of income from undisclosed sources u/s. 68 - Treating long term capital gain as accommodation entries and bogus entries - HELD THAT:- The assessee submitted contract note before the assessing officer, bank statement and STT was paid on the transaction. None of the evidences submitted by the assessee have been proved bogus or concocted. The Ld. assessing officer must have to specify and demonstrate with cogent evidence that transactions of purchase and sale of shares made by the assessee are bogus. In the assessee`s case nothing was brought by the assessing officer to prove that any of these evidences, as narrated above, filed by the assessee is false or untrue. We note that Hon`ble Jurisdictional High Court of Gujarat in the case of Jagat Pravinbhai Sarabhai [2023 (1) TMI 44 - GUJARAT HIGH COURT] held that where AO noted that assessee had indulged in scrip of shell company and had claimed long term capital gain on sale of shares and made addition u/s 68 holding that entire transaction was bogus and in the nature of penny stock, however, since genuineness of investment in shares by assessee was substantiated by him by producing copy of transaction statement for period from 01.06.2001 to 01.10.2010 and shares were retained for more than ten years and were sold after such long time, hence investment was not bogus therefore it cannot be treated that investment was made in penny stock. The genuineness of investment in the shares by the assessee was substantiated by him by producing contract note, transaction was through recognised broker, transaction was done through banking channel on which STT was paid. The shares were held by assessee, as an Investor. Thus we delete addition made. Addition on account of commission paid @ 5% - In the assessee's case AsO added 5% - Since, we have deleted the alleged addition hence addition made by Assessing Officer does not have leg to stand, therefore it is hereby deleted. Assessee appeal allowed,.
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