TMI Blog2018 (11) TMI 1489X X X X Extracts X X X X X X X X Extracts X X X X ..... then to hold the sale of shares as unexplained credit or as unexplained money cannot be upheld. Accordingly, we hold that the money credited in the account of the assessee is from the sale of shares and accordingly benefit of Long Term Capital Gain on sale of such listed equity shares have to be given - Appeal of the assessee is allowed. - I.T.A. No.2766/DEL/2018, I.T.A. No.2767/DEL/2018 - - - Dated:- 26-11-2018 - Shri Amit Shukla, Judicial Member For the Appellant : S/Shri Akhilesh Kumar, Adv. And Pushkar Pandey, Adv,. For the Respondent : Shri S.L. Anuragi, Sr.D.R. ORDER PER AMIT SHUKLA, J.M.: The aforesaid appeals have been filed by the assessee against separate impugned orders of even date, 16.01.2018, passed by ld. CIT (Appeals), Ghaziabad for the quantum of assessment passed u/s. 143(3) for the Assessment Year 2 2014-15. Since facts involved in assessee s appeals are common, therefore, same were heard together and are being disposed of by way of this consolidated order. In the grounds of appeal, the assessee has challenged the disallowance of exemption claimed u/s.10(38) for ₹ 24,60,241/- being Long Term Capital Gain on sale of listed equit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares from 10000 shares of which the assessee sold 30000 shares in F.Y. 2013-14 for ₹ 87/- per share. 3. The assessee only dealt in these shares of M/s CCL International Ltd. and has neither purchased nor sold any other share which again leads to suspicion. 4. The shares of the company were purchased on the advice of his accountant. 5. The assessee didn't watch the price of the shares purchased/sold and only used to enquire about it once in a while. 6. The aforesaid facts clearly indicate that the transaction is a sham. 4 3. After referring to various judgments and general discussion about how this minus of bogus accommodation entry prevailing in the country, he held that the entire sale consideration received from sale of scrip is to be added u/s.69A and thereby made addition of ₹ 26,05,548/- 4. Ld. CIT (A) too has confirmed the said addition and made observations that no evidence in support of genuineness of purchase of shares and justification of purchase price of the share has been submitted by the assessee. Further, M/s. CCL International Ltd. has been found to be penny stock by DIT (Investigation) Kolkata. After discussing various ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 Shares were purchased on 11.05.2009 and were sold on 12.12.2013, and therefore, holding period of shares was more than 4 years and 7 months. Even after entering in 6 Demat of assessee holding period was 3 years and 8 months. He further submitted that rate of the said scrip at BSE on 06.02.2010 to 09.06.2016 was as per the trading norms and cap permitted by SEBI and the said scrip was regularly traded for six years. During the period, the highest rate was over ₹ 600/-, however when the assessee sold it was ₹ 87/- per share on 12.12.2013. The Assessing Officer has not found any material/ information against the assessee nor against the company, M/s. CCL International Ltd. Besides, there is no allegation/statement of any party that the said transaction or even dealing in shares of the company was for bogus capital gain. Neither the said company has been blacklisted by SEBI nor has it been named in the list of Shell Company uploaded by SEBI on net. In the statement recorded by the Assessing Officer, assessee has given all the details as asked and no adverse inference can be drawn from the said statement. He also pointed out that the Income Tax Department itself has acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dences:- a) Contract note giving date, time settlement details etc b) STT is paid on transaction c) Transaction is through Trustline Securities d) Sale is made on online market of Bombay Stock Exchange e) Consideration is received electronically in bank through RTGS f) Shares are transferred from Demat Account. 9. Apart from that, it is not in dispute rather both Assessing Officer and ld. CIT (A) in their exhaustive order have incorporated the price movement of the said scrip right from 06.02.2010 to 09.12.2016 and on perusal of the same it is seen that there has been increase and decrease in the shares prices like a normal scrip and it is also not in dispute that the said shares were traded in all the years under the stock exchange. Before us, learned counsel has also placed the assessment orders for the Assessment Year 2013-14 and 2014-15 in the case of M/s. CCL International Ltd. passed u/s.143(3) to show that this company is genuine and regularly assessed to tax by the Department. From the perusal of the entire assessment order and ld. CIT (A) order, it 9 is seen that, nowhere there is any reference to any material or information so as to suggest that; ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to furnish his comment and the report submitted by the AO as under : During proceeding of the case, it has been found that the assessee has purchased the shares of ₹ 24,000/- by Account payee cheque No. 077429 dated 04.03.2013(Punjab National Bank] from the broker M/s Karvy Stock Broking Limited, C-7, Lohia Nagar, Ghaziabad. The shares have been sold after holding the shares for one year through SEBI Registered broker. The payment of ₹ 9,84,516/- has been received by RTGS after payment of STT. The assessee has claimed Exemption u/s 11 10(38] for the above transaction made also refer the various judgments pronounced by the courts'. 3. Assessee has filed his D-MAT statement from where it is observed that assessee is a regular investor holds shares in many companies. The sale purchase is through account payee cheque and immediately on purchase of shares in March, 2013, the same were reflected in his D-MAT account as on 31.03.2013 with M/s Karvy Stock Brokings. 4. All the details as per AO's questionnaire dated 02.12.2015 has been filed by the assessee. All documents filed appears to be genuine. The assessee has shares of many other companies ..... X X X X Extracts X X X X X X X X Extracts X X X X
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