TMI Blog2012 (9) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer has called into question correctness of Commissioner of Income Tax (Appeals)'s order dated 2nd December, 2011, for the assessment year 2005-06, on the short ground that the learned CIT(Appeals) has erred in law, as well as on facts, in treating the amount of ₹ 10,23,540/- as long-term capital gains instead of short-term capital gains . Briefly, the relevant materi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee on 05.03.2004, and back to D-mat account of Bubna Stock Broking Services Ltd. on 23.04.2004. Accordingly, in the opinion of the Assessing Officer, the holding period of shares by the assessee was less than twelve months, and gain on sale of such shares was required to be treated as short-term capital gains. In effect, according to the Assessing Officer, the assessee was not eligible for exempti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough share broker M/s. Bubna Stock Broking Services Ltd. At that time assessee was not having Demat A/c. was subsequently opened on 05.03.2004 and shares were sold on 23.04.2004 resulting in capital gain of ₹ 10,48,950/- which was invested in bonds of REC on 19.10.2004. The purchase transaction is supported by the contract note from the broker and also reflected in the balance sheet as on 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duly supported by the contract note and balance sheet as on 31.03.2004, and, therefore, it is not open to anyone to tinker with the same. His contention is that since date of purchase of shares is unchallenged, and the date of sale of shares is undisputed, and the difference between the two dates is more than one year, the capital gains on the sale of these shares can only be treated as capital ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis for hearing the capital gains as a short-term capital gain. There is not even a whisper of an allegation about genuineness of the transaction even though it is a case of, what is commonly known as, penny stock and the value of the shares has gone up almost 40 times within one year. On these facts, the Assessing Officer does not question or probe genuineness of transaction and yet claims that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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