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TMI Blog2013 (12) TMI 771X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. The facts are that during the course of the scrutiny assessment proceedings, the AO noticed that the assessee has shown long term capital gains on sale of shares of M/s Highland Industries Ltd.. The AO observed that the assessee has purchased 22,000 no. of shares of Highland Industries Ltd. for a sum of Rs.26,180/- through M/s T.H Vakil Shares & Securities Pvt. Ltd. on 27-5-2002 at the rate of Rs.1.20 per share. The AO further noticed that these shares were purchased in cash. The AO further observed that the shares were sold through M/s Vijay Bhagwandas & Co. on 5-12-2003 for a total consideration of Rs.15,91,260/- @ Rs.72.23 per share. This transaction has resulted into long term capital gains at Rs.15,64,190/-. The AO went on to veri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (A), the assessee filed supporting evidence to substantiate the genuineness of his claim. The details of the documents submitted before the CIT(A) are exhibited at page 5 of the CIT(A)'s order. After considering the submissions of the assessee and in the light of the facts of the case, the CIT(A) was convinced that neither the purchase is documented nor it is supported by any kind of evidence, nor even copy of share certificate is produced. Payment for purchase made by cash and sale proceeds are received by cash. The CIT(A) further observed that the transactions have not been done through proper banking channels nor through Demat Account. There being no credible evidence for the sale, the CIT(A) confirmed the findings of the AO. Aggrieved t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by a certain section of the brokers, details of which were available at the website i.e. www.watchoutinvestor.com. Copy of the same was also placed before us. It is the say of the learned DR that the broker through whom the assessee has claimed to have purchased and sold shares have been blacklisted by this website, being engaged in fraudulent transactions in shares and securities. 7. We have carefully perused the orders of the authorities below and material evidence brought on record. It is not in dispute that the purchase and sale of shares were done through Off Market Transactions, meaning thereby that the shares were not routed through Demat account nor through BOLT. The assessee has admitted this fact. It is not understandable that p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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