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| The Tax Publishers2020 TaxPub(DT) 1835 (Chen-Trib) INCOME TAX ACT, 1961
Section 10(38)
Since assessee was not given a fair opportunity to prove genuineness but assessment was made based on evidences collected by revenue in course of investigation conducted by them on brokers / share broking entities, etc. therefore, issues of exemption claim under section 10(38) were restored to AO for re-adjudication.
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Exemption under section 10(38) - Purchase and sales of shares by assessee were treated as penny stock transactions - Assessee not given a fair opportunity to prove genuineness - Remand of matter
Issue was as regards disallowance of deduction claimed under section 10(38). Assessee was aggrieved by order of CIT(A) confirming addition made by AO by treating purchase and sale of shares by assessee, as penny stock transactions. Held: Assessee was not given a fair opportunity to prove genuineness but assessment was made based on evidences collected by revenue in course of investigation conducted by them on brokers / share broking entities, etc. This was not permissible. Issues of exemption claimed in appeal were remitted back to file of AO for re-adjudication. AO was directed to require assessee; to establish who, with whom, how and in what circumstances transactions were carried out etc., to prove that transactions were actual, genuine, etc.
REFERRED :
FAVOUR : In matter remanded
A.Y. :
IN THE ITAT, CHENNAI BENCH
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