2025 (12) TMI 1497

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....peal before it against the order dated 28.03.2022 passed u/s 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred as 'the Act') by the National Faceless Assessment Centre, Delhi (hereinafter referred to as the Ld. AO). 2. Heard and perused the records. The assessee filed the return of income on 02.08.2017 wherein he has claimed exemption of Rs. 1,77,59,716/- as exempt income u/s 10(38) of the Act being long-term capital gains. The record and the submissions bring forth that on 13.05.2014, the assessee purchased 750000 shares of Fidelo Power and Infrastructure Limited (hereinafter referred to as FPIL) from M/s Surya Buildpro Pvt. Ltd. through account payee cheque. On 22.05.2014, the shares of FPIL were dematerialized. On ....

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.... available on record, the reasons were recorded. 3. Justifying the transaction as bonafide, on merits of the transaction, the assessee has supported the transaction with following documents:- * Purchase invoice of share Fidelo Power and Infrastructure Ltd - available at page no 15 of the paper book * Demat statement with depository Elite Wealth Ltd for the period ending 31st March, 2014 to 2017 - available at 18 to 25 of the paper book * Bank statement evidencing payment made for purchase of shares in Fidelo Power and Infrastructure Ltd - available at page nos 26 and 27 of the paper book * Scheme of Arrangement and Order of Bombay High Court approving the merger of Fidelo Power and Infrastructure Ltd w....

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.... are recorded would go to show that whatever information was made available by investigation wing to the AO was considered to be sacrosanct and without application of any due diligence the information was relied and processed to find a hypothetical live link with regard to escapement of income. 5. After taking into consideration the material on record and the submissions, we are of the considered view that certainly the documentary evidences cited on behalf of assessee documents in themselves are not sufficient to establish the genuineness of the transaction, but, the surrounding circumstances if considered indicate substance in the claim of the assessee that the allegations of a bogus long-term capital gain are not sustainable. It comes....