2018 (11) TMI 1626

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.... ld.A.R that the issue in this appeal was against the action of the Ld.CIT(A) in confirming the addition made by ld. Assessing Officer in treating the purchase and sale of shares by the assessee in M/s.Bakra Pratisthan Ltd., as penny stock transactions. It was the prayer that the claim of exemption u/s.10(38) of the Act on the long term capital gains on sale of shares may be allowed. 4. In reply, it was submitted by ld.D.R that the issue was now squarely covered by the decision of Co-ordinate Bench of this Tribunal in the case of Shri Heerachand Kanunga for assessment years 2010-11 & 2011-12 in ITA Nos.2786 & 2787/Mds/2017 vide order dated 03.05.2018 wherein the issue has been restored to the file of ld. Assessing Officer with certain di....

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....ased 15000 shares from M/s.BPL @ Rs. 20/- per share totaling into Rs. 3,00,000/-. The assessee claims to have paid cash for the purchase of these shares. The primary question would be as to where the purchase was done? If the purchase has been done in Kolkata, how was the cash transferred? When did the assessee received the share certificates and the share transfer forms? How did the assessee overcome the provisions of Sec.40A(3)? Was there adequate cash availability in the books of the assessee on 24.04.2008? Did the assessee travelled to Kolkata? How was the transaction done? Who applied for the demating of the shares? When were they demated? When were the shares transferred to the demat account of the assessee? To whom were the shares so....

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....e assessee. This is also not forthcoming. In reply to a specific query, as the date of the demat of shares, it was submitted by the Ld.AR that the demat was done on various dates. Then the question rises as to why there is so much of difference in the dates of demating when 15000 shares have been purchased together on 24.04.2008. No details in respect of M/s.BPL company is known, what is the product of the company which had lead to the share value of the company to go up from Rs. 20/- to Rs. 352/- in a period of two years. This would clearly be a case where the share value of the company was hitting the circuit breaker of the stock exchange on a daily basis and obviously it would have drawn attention. This being so, as the facts are not com....