Tribunal affirms deletion of LTCG addition for AY 2009-10, citing genuine share transactions. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal and confirming the deletion of the addition related to LTCG for AY 2009-10 ...
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Tribunal affirms deletion of LTCG addition for AY 2009-10, citing genuine share transactions.
The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal and confirming the deletion of the addition related to LTCG for AY 2009-10 based on genuine share transactions through Alliance, despite connections to Mukesh Choksi group.
Issues involved: Assessment of Long Term Capital Gain (LTCG) under section 10(38) for AY 2009-10 based on share transactions through Alliance Intermediaries and Network Pvt. Ltd., belonging to Mukesh Choksi group.
Analysis: The appeal by the Revenue challenged the CIT(A)'s order for AY 2009-10 regarding LTCG declared by the assessee on the sale of shares. The AO disbelieved the LTCG, alleging accommodation entries from a company in Mukesh Choksi group. The CIT(A) relied on a previous case and deleted the addition, leading to the Revenue's appeal.
The Department's representative highlighted a search revealing Mukesh Chokshi's involvement in providing accommodation entries through various companies, including Alliance. Referring to previous Tribunal decisions, the Department argued that transactions by firms connected to Mukesh Chokshi lack genuineness due to admission of providing accommodation entries.
Upon examining submissions, the AO's addition was based on doubts about share transactions through Alliance, leading to the full consideration's addition. The CIT(A) found the transactions genuine, citing delivery-based transactions, banking channel payments, registered broker involvement, BSE floor transactions, previous year's transactions, an affidavit from Alliance, and lack of cross-examination opportunity for the assessee.
The Tribunal upheld the CIT(A)'s decision, noting the Revenue's failure to challenge the CIT(A)'s findings. The well-reasoned order stood, dismissing the Revenue's appeal and upholding the impugned order for AY 2009-10.
In conclusion, the Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal and confirming the deletion of the addition related to LTCG for AY 2009-10 based on genuine share transactions through Alliance, despite connections to Mukesh Choksi group.
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