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2019 (7) TMI 364 - AT - Income TaxBogus LTCG on sale of shares - sale of penny stocks - accommodation entries as alleged by the ld AO - undisclosed commission expenses u/s 69C - HELD THAT:- AO / CIT(A) has not made any negative/adverse remarks or finding against the aforesaid documents produced before the AO. However, they have brushed aside these documents and has relied heavily upon the general investigation report of the department, which has not found any wrong doing on the part of the assessee or her broker who sold the shares. We note that the suspension by SEBI of transaction of scrips of M/s. KAFL has been later lifted. Therefore, in the light of the above supporting documents the assessee’s claim for LTCG has to be allowed. We allow the claim of LTCG of the assessee and delete the addition made u/s 69C of commission expenses. See MANISH KUMAR BAID AND MAHENDRA KUMAR BAID VERSUS ACIT, CIR-35, KOLKATA [2017 (10) TMI 522 - ITAT KOLKATA] Valid claim of LTCG - period of holding - whether assessee held the scrip for a period of 12 months - CBDT Circular No. 704 dated 28.04.1995 - date of contract of sale as declared by the parties shall be treated as the date of transfer - purchase of share made directly between the parties and not through stock exchange - HELD THAT:- According to the documents filed before us since the actual delivery of shares took place along with transfer deeds/contract bills, so that date should be considered the date of transfer. Thus, we note that assessee held the shares of M/s. Panchshul on 30.03.2012 (page 8 & 9 of paper book) which was later merged with M/s. KAFL and scrips of M/s KAFL was sold on 16.08.2013 – 28.08.2013, so the assessee was holding the shares in question for more than 12 months. Therefore, the claim of assessee for LTCG is valid in the eyes of law. - Decided in favour of assessee.
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