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2019 (1) TMI 892 - ITAT KOLKATA
Bogus LTCG - unexplained cash credit u/s 68 - unexplained expenditure on account of commission - assessee had made investment in shares not having any sound financial position or business activity so as to justify the long term capital gains to this extent - Held that:- AO erred in recording a finding of fact that the assessee had made the purchase of M/s. NFGL not through Stock Exchange but it was an off market transaction. We find that the assessee had purchased the shares of M/s. NFGL through registered broker M/s. M. Prasad & Co. which was a registered stock broker of the Bombay Stock Exchange and on 13.06.2012 assessee purchased 25000 shares at ₹ 128.25 per share on which STT was paid and the total transaction of ₹ 32,21,213.10 was paid through account payee cheque to the registered broker and the shares were deposited in the demat account (D. P. Stock HLDG Corp of India Ltd.)
Revenue fails to indicate any specific evidence against the assessee in terms qua the LTCG derived from transfer of shares in the mentioned two companies. We therefore delete the impugned bogus LTCG addition. Consequently the addition made towards unexplained expenditure on account of commission also stands automatically deleted.- Decided in favour of assessee.