Genuine share transaction evidence defeats unexplained cash credit addition absent direct proof of accommodation entry or price rigging.

Sale proceeds from share transactions could not be treated as unexplained cash credit or bogus long-term capital gain where the assessee produced contract notes, demat statements and banking records showing purchase and sale through regular channels. The addition rested mainly on investigation material concerning the scrip and a third-party statement, but no material linked the assessee to price rigging, accommodation entries or other dubious conduct. A finding of non-genuineness based only on presumption and human probabilities, without direct evidence against the assessee, was therefore unsustainable.

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Issues: Whether the addition made by treating the sale proceeds from share transactions as unexplained cash credit and bogus long-term capital gain was sustainable.

Analysis: The assessee had placed on record contract notes, demat statements and banking records showing purchase and sale through regular channels. The addition was founded mainly on investigation material relating to the scrip and on the statement of a third party, but no material was brought on record to link the assessee with any price rigging, accommodation entry or other dubious activity. The finding that the transaction was non-genuine was based on presumption and human probabilities rather than direct evidence against the assessee.

Conclusion: The addition could not be sustained and the issue is decided in favour of the assessee.

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