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| The Tax Publishers2020 TaxPub(DT) 1944 (Kol-Trib) INCOME TAX ACT, 1961
Section 68
As transactions of sale of shares by assessee was duly supported by relevant evidences including contract notes, demat statement and bank account statements etc., assessee could not be blamed for bogus transactions. merely because the stock price moved sharply. Accordingly, LTCG on sale of shares taken place through on-line (both purchase and sale) after giving STT was to be allowed and, therefore, addition under section 68 could not be sustained based on mere investigation report.
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Income from undisclosed sources - Addition under section 68 - Long-term capital gain on sale of shares -
Assessee claimed long-term capital gain (LTCG) on sale of shares as exempt under section 10(38). AO based on information emanated from investigation wing as to assessee being beneficiary of penny stock companies, treated assessee's claim as bogus and made addition of sale proceeds of shares under section 68. Held: As transactions of sale of shares by assessee was duly supported by relevant evidences including contract notes, demat statement, bank account reflecting the transactions, stock brokers and stock exchange confirmed, assessee could not be blamed for bogus transactions.merely because the stock price moved sharply. Accordingly, LTCG on sale of shares taken place through on-line (both purchase and sale) after giving STT was to be allowed and, therefore, addition under section 68 could not be sustained based on mere investigation report.
Followed:Madhu Killa v. Asstt. CIT [ITA No. 834/Kol/2018] : (2018) TaxPub(DT) 8030 (Kol-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, KOLKATA BENCH
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