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2019 (7) TMI 867 - ITAT KOLKATA
Bogus LTCG - denying the exemption claimed by the assessee u/s 10(38) - HELD THAT:- Purchases were made by the assessee in cash for acquisition of shares of companies and the purchase of shares of the companies was done through the broker and the address of the broker was incidentally the address of the company. The profit earned by the assessee was shown as capital gains which was not accepted by the A.O. and the gains were treated as business profit of the assessee by treating the sales of the shares within the ambit of adventure in nature of trade. Thus, it can be seen that in the decision relied upon by the DR, the dispute was whether the profit earned on sale of shares was capital gains or business profit.
In the light of the documents filed by the assessee before the AO/Ld. CIT(A) and before me, which could not be controverted by any material by AO, so respectfully following the ratio laid by the Hon’ble jurisdictional High Court and other High Courts and the ratio laid by the Hon’ble Supreme Court and this Tribunal, and the decision in the case of Navneet Agarwal [2018 (8) TMI 509 - ITAT KOLKATA] wherein the claim of LTCG for sale of shares of M/s. Cressenda Solutions Ltd. which was allowed by the Tribunal. Respectfully following the same, allow the claim of the assessee in respect of Long Term Capital Gain in respect of sale of shares of M/s. Cressanda Solutions Ltd and direct deletion of addition for AY 2015-16. Grounds of appeal of assessee challenging the addition made on this issue are allowed. - Appeals of assessee are allowed.