| |
| The Tax Publishers2020 TaxPub(DT) 2851 (Mum-Trib) INCOME TAX ACT, 1961
Section 68
Since investment in concerned scrips was duly reflected by assessee in its Balance Sheet and sale of scrips during concerned assessment year had taken place in stock exchange through an independent broker namely shares had been given from assessee's demat account and sale consideration has been received through banking channels there could be no occasion to treat sale transactions as bogus transaction especially when broker was found in no way connected with tainted group.
|
Income from undisclosed sources - Addition under section 68 - Long-term capital gain on sale of shares - Broker found in no way connected with tainted group
Assessee earned long-term capital gains on sale of shares and claimed the same to be exempt. The shares were stated to be purchased from M/s. AINPL whereas same were sold through another broker namely M/s. JCSL. In order to verify the fact that purchase transactions were routed through Bombay Stock Exchange Ltd. (BSE), copies of contract notes were forwarded to BSE to confirm the said fact. In reply, it was submitted by BSE that M/s. AINPI was neither a registered trading member nor a registered trade-broker affilated to any trading member of the exchange. Although the assessee reiterated that transactions were genuine however, disregarding the same, AO concluded LTCG as bogus and accordinlgy, made addition under section 68.Held: Investment in concerned scrips was duly reflected by assessee in its Balance Sheet as on 31-3-2006 & 31-3-2007, which was uncontroverted fact. The sale of scrips during concerned assessment year had taken place in stock exchange through an independent broker namely M/s. JCSL and the delivery of the shares had been given from assessee's demat account and sale consideration has been received through banking channels. Assessee was in possession of broker bills & contract notes in respect to purchase as well as sale of these scrips. There were credit and debit of shares in assessee's demat account. The scrips were of reputed corporate entities like IFCI, Indian Bank & Jai Corp. Nothing on record established that broker namely M/s. JCSL was, in any manner, was connected with tainted group. Hence, there could be no occasion to treat sale transactions as bogus transaction. As a natural corollary, since there could be no sale of scrips without actual purchase of scrips and purchase transactions stood accepted as genuine.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2010-11
INCOME TAX ACT, 1961
Section 68
 SUBSCRIBE FOR FULL CONTENT
|