TMI Blog2022 (11) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... ot no other material on record to rebut the claim of the assessee of exemption claimed u/s.10(38) of the Act, the addition is to be deleted Assessee has proved the genuity of the transaction by furnishing all the required documentary evidence. It is also pertinent to point out that the lower authorities have not rebutted the claim of the assessee, other than the information received from DDIT that M/s. Vas Infrastructure Ltd. is a penny stock. CIT(A) has not dealt with the issue in details except for relying on the order of the A.O. No independent enquiries have been carried out by the lower authorities as to the impugned transaction - we set aside the order of the ld. CIT(A) and delete the addition made u/s. 68 - Decided in favour of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... show any substantial change, so as to attract huge share price and that the said company does not have business to substantiate the sharp rise in the market price of the shares as alleged by the A.O. It is observed that the assessee has claimed STCL which are tabulated as below: Sr. No. Qty Purchase Sale STCG Date Rupees Date Rupees 1 250 23.11.2010 33,788 07.04.2011 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... close circuit of persons. The A.O. held that the credit worthiness of the said company was not proved, thereby disallowing the STCL claimed by the assessee u/s.68 of the Act. 5. The assessee was in appeal before the ld. CIT(A) as against the addition made by the A.O. 6. The ld. CIT(A) confirmed the said addition on the ground that the assessee has failed to substantiate its claim. 7. The assessee is in appeal before us. The ld. AR contended that the impugned purchase was made through BSE and that the assessee has held the shares for about six months and the assessee has furnished all the relevant details such as the copy of the profit and loss account, capital account, balance sheet, ledger account of long/short term capital gain/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the financials of M/s. Vas Infrastructure Ltd. for an analysis of the transactions of the assessee with M/s. Vas Infrastructure Ltd. alleged to be an accommodation entry provider by issuing penny stock for the purpose of LTCG/STCL. It is observed that the assessee has furnished the details pertaining to the financials of the assessee, the details of the broker along with the copy of the broker ledger, broker notes and global rate of share transactions along with sauda report and Form 10DB certificate before the lower authorities. The assessee has also specified that the assessee has furnished details pertaining to the payments made for purchase of the impugned shares from the bank account to the broker. The assessee has further contende ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... through some other broker named M/s Ramanlal D Shah. It Appeared that the said broker is not connected to Mukesh Chokshi group. In support of the sales, the assessee have furnished copies of broker notes and the evidences of payments received on sale of shares. The AO has expressed the view that the assessees have not proved delivery of shares. However, we notice that the assessees have furnished copies of However, transaction summary evidencing delivery of shares before Ld CIT(A). Thus, we notice that the deficiency pointed out by the AO has bee deficiency pointed out by the AO has been made good by the assessees by furnishing copies of transaction. Thus, we notice that the deficiency pointed out by the A.O. has been made good by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to suspect the claim of purchase of herein for the assessment year under consideration and direct the AO to accept the claim of impugned Long term capital gain. 10. It is also pertinent to point out that the assessee has transacted the sale of shares through recognized stock exchange and purchases also from recognized stock exchange and the payments and receipts were made through proper banking channels. The assessee has placed its reliance on the decision of Smt. Shikha Dhawan (supra), wherein it was held that the assessee was able to prove the genuinely of the transaction of purchase and sale of shares and that the same has been routed through recognized stock exchange and when the Revenue has got no other material on record to rebut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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