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2023 (6) TMI 87 - AT - Income TaxAddition u/s 68 - proceeds from the sale of shares by treating the scrips as penny stocks - Whether any link between the assessee with the entry operators/exit providers? - HELD THAT:- Despite the Revenue having the information regarding the stockbrokers through whom the shares were sold, there is no evidence on record that even these shareholders were named in the investigation conducted by the Investigation Wing of the Department. AO has not given any adverse comments or drawn adverse inferences on the documentary evidence submitted by the assessee. Revenue has failed to prove with any cogent evidence on record that the assessee was involved in converting his unaccounted money into long-term capital gains and short-term capital gains by conniving with any entry operator/exit provider, who was involved in artificial price rigging of shares. This is the case wherein the AO merely on the basis of suspicion rejected the claim of the assessee, without establishing any link between the assessee with the entry operators/exit providers, who were allegedly involved in price rigging of shares artificially of the aforesaid companies. Direct the AO to delete the impugned addition made under section 68 and accept the plea of the assessee in respect of the long-term capital gains and short-term capital gains earned during the year. Decided in favour of assessee.
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