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2023 (9) TMI 1161 - GUJARAT HIGH COURTDisallowance of exemption u/s. 10(38) - Bogus LTCG - SEBI had passed an interim order in relation to this scrip by ‘MFTL’ holding that preferential allottees and promoters related entities had, with the aid of exit providers, misused the exchange mechanism to exit at a higher price - Principal CIT (A) and the Tribunal found that the SEBI report based on which the AO had made additions was an interim report and in the final report there was no adverse finding. SEBI in the final report had not made any adverse findings - HELD THAT:- As verified that the payment for purchase of shares was made through banking channel, shares were in demat account of the appellant for more than 12 months before they were sold through BOLT of BSE and the proceeds have been received through banking channel, STT has been paid. The main stand of the AO which was picked up from SEBI interim report has also been decimated by the final report of the SEBI itself. Confirming this view of the CIT(A), the Tribunal observed that having gone through the assessment order it was evident that it was based on the interim report. The final report of SEBI had absolved the scrip of all charges. Moreover, there was no independent finding on any other aspect casting doubts to show that share prices were manipulated at an unreasonable price when sold. Decided against revenue.
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