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2016 (3) TMI 177 - AT - Income TaxProfit on sale of shares - short term capital gains subject to tax @ 10% as per provisions of sec. 111A OR addition(s) made by Assessing Officer on account of unexplained credits u/s 68 - non-genuine purchases/sales of transactions of shares - Held that:- The sale consideration received from sale of equity shares at ₹ 49,66,501/- cannot be treated as unexplained cash credit u/s 68 of the Act because assessee has offered complete explanation about the nature and source of the credit which has happened in the year under appeal through bank transaction and complete details of M/s Grishma Securities P. Ltd. (from whom the sale consideration of ₹ 49,66,501/- is received) in the form of its membership No., contract note, SEBI registration No., PAN and bank details were made available to the Assessing Officer. The transaction being chargeable to STT 2nd condition laid down in Section 111A(1)(b) is also satisfied. So far as payment or recovery of STT is concerned, it can be taken care of by Chapter VII of the Finance No.2 Act of 2004 which provides for assessment, collection recovery of STT. Recognized stock exchange had been empowered to collect the STT, the A.O. is empowered to make assessment of such STT as per Section 102 of STT Act as per Chapter VII of the Finance Act No.2 of 2004. There is no contrary material to hold that is not in fact STT but some other charges except the apprehension of the A.O. which is not found substantiated. We, accordingly uphold the contention of the assessee and as accepted by Ld. CIT(A) that the sum is in fact STT duly deducted by the broker from the payments made to the assessee on sale of shares. - Decided in favour of assessee
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