2019 (9) TMI 719

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s. 2. The facts of the case are that the assessee filed his return of income declaring capital gains and income from other sources. The assessee had declared long term capital gain of Rs. 8,40,497/ and claimed the same as exempt u/s 10(38) of the Act. The assessee had sold 2200 shares of M/s Sunrise Asian Ltd (formerly Santoshi Maa Tradelinks Ltd before amalgamation) for a value of Rs. 9,73,927/- in May, 2013. The assessee had purchased the above said shares in April 2012 for a consideration of Rs. 1,33,430/-. The AO received information from investigation wing that the trading in shares of Sunrise Asian Ltd falls under the category of suspicious long term capital gains on shares. Accordingly he reopened the assessment of the year under ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ned speculation profit from some other broker. Inviting our attention to the copies of financial statements furnished for AY 2013- 14, the Ld A.R submitted that the assessee has earned speculation profits from two brokers in that year, one of which is M/s Eden Financial Services Ltd, from whom the shares were purchased against the speculation profit. (b) The brokers from whom the assessee had purchased shares and through whom the assessee sold shares have not been identified as tainted brokers. (c) The purchase of shares and the source of purchases have been accepted by the assessing officer in the preceding year. (d) The shares have been received in d-mat account of the assessee and they have been sold through th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Income tax Appeal No.385/2011 dated 11.09.2017), since the shares were transacted through Stock Exchange. He submitted that the assessee, in the instant case also, has transacted the purchase and sale transactions through stock exchange only. He further submitted that the assessee has purchased and sold shares of other companies also, which is evident from the d-mat statement. 7. I have heard rival contentions and perused the record. I notice that the AO has received information about suspicious share transactions and on the basis of the same; he has disbelieved the claim of long term capital gains. I notice that the assessee has purchased shares through a broker named M/s Eden Financial Services and sold shares through Intime Equities L....