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2015 (10) TMI 317 - AT - Income TaxClaim of exemption u/s 10(38) on long term capital gain from sale of shares - date of transaction to be considered - shares were transferred to assessee’s D-mat account - CIT(A) held that the gain derived from transaction in shares cannot be treated as short term capital gain - also the conclusion drawn by AO that source of investment in shares on 15th nd 17/05/07 was not explained by assessee while making addition u/s 69A cannot be sustained - Held that:- It may be a fact that the shares of M/s Jai Corporation Ltd. were transferred to assessee’s D-mat account on 15 & 17/05/07, but, that alone cannot dilute the fact that assessee did purchase shares of M/s Jai Corporation through M/s Alliance Intermediateries & Network Pvt. Ltd. in April’06. This fact has been clearly demonstrated by assessee by producing adequate and cogent documentary evidences by way of contract note and other evidences including the return of income filed for AY 2007-08, which has not been controverted by the department. It is also a fact on record that sub-broker M/s Alliance Intermediateries & Network Pvt. Ltd. issued confirmation certificates acknowledging the fact that shares were held in its pool account on behalf of assessee till it is transferred to assessee’s D-mat account. When assessee has produced all documentary evidences and has also submitted its explanation before AO as well as ld. CIT(A), there is no reason to disbelieve the same unless strong and positive evidence is brought on record to disprove the same. As it appears, AO only on extraneous considerations and presumptions & surmises has concluded that assessee has purchased the shares only on 15 & 17/05/07 while treating the gain derived from sale of shares as short term capital gain. See Jafferali K. Rattonsey Versus Deputy Commissioner of Income-tax, Central Circle 5 [2012 (7) TMI 577 - ITAT MUMBAI ] In the present case, the contract note of purchase of shares clearly indicate the date of purchase as 04/04/2006. In the aforesaid view of the matter, finding no infirmity in the order of ld. CIT(A), we are inclined to uphold the same and dismiss the grounds raised by the department. - Decided against revenue
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