TMI Blog2010 (2) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... e. We find that the genuineness of the transactions of purchase and sales of shares. In the remand report it was clearly mentioned that the transaction has been clearly confirmed by the brokers but also through separate letter issued by the brokers . We find that the CIT(A) has called for the remand report and the inquiries were conducted to ascertain whether or not transactions even though they were conducted on-line it has been duly reported by exchange as required by the guidelines issued by the SEBI. The AO has furnished report wherein it has been mentioned that the brokers and the depository have confirmed the said share transactions. Therefore, we are of the view that the CIT(A) is justified in deleting the same and our interferenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s not entered through stock transaction and it was through direct transaction shares held in a demat account with M/s. G. Raj Co., who had issued certificate dt. 8.3.2006, confirmed the shares had been physically delivered to the depositor. However, AO rejected the assessee s claim for high price. Mere filing of the contract notes could not be accepted as evidence of the genuineness of the transactions therefore he was of the view that the assessee has failed to prove the identity of the purchaser and therefore, the entire sales of ₹ 22,51,450/- was treated as unexplained cash credit under the provisions of section 68. 3. The matter carried to the C.I.T.(A) and the C.I.T (A) has allowed the claim by observing as under:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d profits have been taken in the books of accounts of the assessee by manipulation of the Stock Exchanges and AO has indulged in subverting the system by manipulation of stock exchanges and the A.O. has elaborately discussed the modus operandi. Therefore, AO has rightly treated the entire sales proceeds of ₹ 22,51,450/- as unexplained cash credit within the meaning of section 68 of the I. T. Act. 6. The learned AR submitted that shares sold were registered with the SEBI as well as with the CSE. This fact has been confirmed by CSE at the time of shares were sold. It was accepted practice for the brokers to engage in-house transactions between two clients and it was because of this reason the time and date of transactions were al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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