2025 (6) TMI 320

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.... ld.CIT(E) erred in confirming the action of the AO making addition of sale consideration from sale of Equity shares of alleged penny stock company namely Blazon Marbles Limited at Rs. 5,50,059/-. 3. Brief facts of the case are that the assessee is an individual and declared income of Rs. 23,57,497/- for A.Y. 2014-15 furnished on 13.09.2014 which was subsequently selected for scrutiny under CASS. In the return of income, assessee has declared income under various heads including short term capital gain of Rs. 2,87,979/- from sale of 16000 Equity shares of Blazon Marbles Limited. Since this is the only issue for which the grounds of appeal has been raised, facts relating to same are that the assessee furnished the details before the Assessi....

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....sions referred by ld.CIT(A) the issue is regarding claim of long term capital gain exemption u/s. 10(38) of the Act coupled with the fact that shares are mostly purchased through offline market followed by the amalgamations, split and then issue of bonus shares. He submitted that the case of the assessee is only a short term capital gain. He further referred to the decision of Coordinate Bench, Mumbai in the case of Shri Yogesh P. Thakkar Vs. DCIT - ITA No.1605/Mum/2021 and others order dated 03.02.2023 where also the assessee has entered into the purchase/sale transaction of the Equity shares of Blazon Marbles Limited. Referring to the observation of Hon'ble Jurisdictional High Court in the case of CIT Vs. Shyam S. Pawar reported in 54....

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....e assessee purchased 16000 Equity shares in two parts; 4000 Equity shares vide contract note dated 18.12.2012 and 12000 Equity shares vide contract note dated 04.03.2013. The purchases has been made through registered share broker from recognised stock exchange platform and the shares have been received in the Demat account of the assessee immediately after the purchase. Page 32 of the paper book is the Demat account statement which confirms this fact. After holding the Equity shares in the Demat account for less than a year, assessee sold 6000 Equity shares on 03.10.2012 and 10000 Equity shares on 07.02.2014 which was again through recognised stock exchange and shares transferred through the Demat account. The consideration received throug....