TMI Blog2022 (11) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... ares, ld. AO noted that no documentary evidences have been produced to support the claim that shares were purchased in F.Y. 2011-12 and thus he arrived at a conclusion that the year of purchase is the current year under the consideration and not the financial year 2011-12. By considering the purchases as made during the year which in our observation is without any basis, ld. AO treated the Long Term Capital Gain on sale of shares as Short Term Capital Gain and brought it to tax under the Act. Considering the facts and circumstances of the case and the material placed on record which has not been doubted or disputed by the ld. AO, we find it proper to treat the profit on sale of shares as Long Term Capital Gain. It has been claimed as exe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred in sustaining the addition of Rs. 43,48,421/- made by the AO. vi. The appellant craves leave to add, amend, alter, delete or withdraw any or all the grounds of appeal. 3. The only issue involved is this appeal by the assessee before us is in respect of treatment of Long Term Capital Gain earned by the assessee on sale of shares and claimed as exempted u/s 10(38) of the Act as Short Term Capital Gain brought to tax by the ld. AO. 3.1. Ld. CIT(A) has dismissed the appeal of the assessee for nonprosecution. 4. Before us, ld. Counsel of the assessee, Shri Srinivas Nayak, CA submitted that assessee has earned an income of Rs. 43,48,421/- as profit on sale of shares and claimed it as exempted u/s 10(38) of the Act. Ld. Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that assessee produced the contract note in respect of the sale of shares and share transfer form for purchase of the same along with statement of DMAT account. It was also pointed out that shares were purchased in physical form and after their transfer to DMAT account, they were sold in DMAT form. He stated that share transfer deed, share certificates, debit note, receipt ledger extracts and details of STT paid were all furnished before the ld. AO. 4.2. Ld. Counsel categorically pointed out that assessee had purchased the shares in Financial Year 2011-12 in physical form from M/s. Corporate Commodity Brokers Pvt. Ltd. for which the payment was made in cash out of regular income, gift received and past savings of the assessee. Ld. Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. AO was very well aware that the assessee has purchased the shares from M/s. Corporate Commodity Brokers Pvt. Ltd. in physical form and not from M/s. Religare Securities Ltd, fact of which is noted at page 3 of the order. According to the ld. Counsel, ld. AO has wrongly concluded that there was no purchase in F.Y. 2011-12 despite all the documentary evidences placed on record before him. 4.5. Ld. Counsel thus emphasized that treating the Long Term Capital Gain claimed as exempted u/s 10(38) of the Act as Short Term Capital Gain chargeable to tax is a conclusive evidence that all the submissions made by the assessee in support of her claim have been accepted except for the year in which purchase of shares was made. He thus strongly sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the broker M/s. Religare Securities Limited. He has furnished copy of ledger extracts and statement obtained from M/s. Religare Securities Ltd., in support of sale j of shares of M/s.Turbotech Engineering made through M/s. Religare Securities Ltd., with Account Code PS9735, but no proof in support of ! Securities Transaction Tax paid and also no documentary evidence regarding purchase of shares has been furnished. The AR has also produced contract note/ share transfer form for purchase and sale of shares and demat statement. Further it is stated that the shares purchased are in physical form and after transfer to demat account the same are sold in demat form. During the course of assessment proceedings the AR was asked to furnish the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he year and not during the year 2011-12 and also has failed to explain the sources of investment. Considering the above facts and also based on the reasons for selection being suspicious Long Term Capital Gains the claim of the assessee regarding exemption u/s. 10(38) is disallowed and Rs.43,48,421/- are brought to tax under the head income from Short Term Capital Gains . 7.1. From the perusal of the assessment order, we note that ld. AO has called for various documentary evidences and details, all of which have been placed on record by the assessee as referred by the ld. Counsel in his submission. Ld. AO has acknowledged and confirmed the submission of all the relevant documentary evidences stated in the order itself. We also note ..... X X X X Extracts X X X X X X X X Extracts X X X X
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