2019 (11) TMI 1845

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....addition of Rs. 10,32,480/- of the LTCG U/s 68 made by the Learned Assessing Officer; without considering the fact, "that appellant has sold the Equity Share duly listed in recognised Stock Exchange through the SEBI, BSE & NSE recognised Broker and on which STT has been paid. Further all the contract notes were placed on record. All transactions of Sale & Purchase of said Listed Equity shares has been done through account payee cheques only and same were duly reflected in appellant's bank account and the said shares were kept more than a year in his Demat account. 2. On the facts and circumstances of the case Learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 20,650/- of Unexplained expenditure....

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....M/s Matra Kaushal Enterprises Ltd., it became the owner of the shares of M/s Matra Kaushal Enterprises Ltd., which were also dematerialized and subsequently sold. It was further submitted that since the payments have been made/received through banking channel, therefore the action of the AO of making the said addition u/s 68 after rejecting its claim of LTCG is not correct. Moreover, in support of its transactions of purchase/sale of shares of M/s Matra Kaushal Enterprises Ltd, the assessee had submitted before the AO as well as the undersigned, the copy of share certificate of M/s Kaushalya Global Ltd., bank statement, Demat Account, sale bills of M/s Prabhudas Liladhar (P) Ltd., etc. It is also observed that the AO has not made any additi....

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....round a year in getting their Dematerialization. It is also observed that the dematerialization of the shares as well as the time of sale coincides with the spiraling price of the said scrip. 5.5 Moreover, it is observed that the shares of M/s Kaushalya Global Ltd (which got amalgamated with M/s Matra Kaushal Enterprises P Ltd) which were allegedly purchased @ Rs 10/- per share have been sold at an average rate of around @ Rs 517/- per share. The assessee has not been in a position to justify its decision of trading in the shares of the said scrip which had weak fundamentals. The fantastic sale price was not at all possible as there was no economic or financial basis as to how the shares of this scrip would jump from nominal amount....