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2022 (11) TMI 655 - AT - Income TaxLTCG on gain on sale of shares - treatment of Long Term Capital Gain earned on sale of shares and claimed as exempted u/s 10(38) as Short Term Capital Gain brought to tax by the ld. AO - HELD THAT:- AO has called for various documentary evidences and details, all of which have been placed on record by the assessee as referred by the ld. Counsel in his submission. AO has acknowledged and confirmed the submission of all the relevant documentary evidences stated in the order itself. We also note that ld. AO has observed that shares have been purchased in cash. Despite the documentary evidences placed on record in respect of purchase of shares, ld. AO noted that no documentary evidences have been produced to support the claim that shares were purchased in F.Y. 2011-12 and thus he arrived at a conclusion that the year of purchase is the current year under the consideration and not the financial year 2011-12. By considering the purchases as made during the year which in our observation is without any basis, ld. AO treated the Long Term Capital Gain on sale of shares as Short Term Capital Gain and brought it to tax under the Act. Considering the facts and circumstances of the case and the material placed on record which has not been doubted or disputed by the ld. AO, we find it proper to treat the profit on sale of shares as Long Term Capital Gain. It has been claimed as exempt u/s 10(38) of the Act by the assessee and thus we set aside the treatment given by the AO of Short Term Capital Gain. Accordingly, the appeal of the assessee is allowed.
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