TaxTMI 
TaxTMI 
2025 (2) TMI 1563
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....ition of Long Term Capital Gain of Rs. 66,69,936/- as "un-explained money" u/s. 68 of the Income Tax Act, 1961 ("the Act"). 2. The facts relating to the case are stated in brief. The assessee purchased 12,000 shares of HPC Bio Sciences from Bombay Stock Exchange on 02-04-2013 through an authorized broker. The shares were received by the assessee in his DMAT account. Subsequently, the assessee sold all the shares through Stock Exchange in April, 2014 and declared Long Term Capital Gain of Rs. 66,69,936/-. The assessee claimed the same as exempt u/s.10(38) of the Act. The AO noticed that the Investigation Directorate of Kolkata had conducted investigation into 84 shares, which were identified as "penny stock" and the above said company was....
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....he assessee, i.e., the assessee is a regular investor and is holding shares of other companies. Accordingly, he contended that the AO could not have doubted the genuineness of the purchase and sale of shares. In support of his contentions, the learned AR placed his reliance on the decision rendered by Hon'ble Bombay High Court in the case of PCIT Vs. Indravadan Jain, HUF (Income Tax Appeal No. 454 of 2018 dated 12-07-2023). 4. The Ld.DR, on the contrary, supported the orders passed by the tax authorities. 5. We heard rival contentions and perused the record. We notice that the assessing officer has primarily placed reliance on the report given by the Investigation wing of the Income tax department, Kolkata in order to arrive at th....
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....ce that the assessee is a regular investor in shares. Further, the AO has not found any defect/deficiencies in the evidences furnished by the assessee with regard to purchase and sale of shares. Further, the AO has not brought on record any material to show that the assessee was part of the group which involved in the manipulation of prices of shares. We notice that the shares were purchase in an earlier year and the said purchase has not been suspected by the AO. Hence, there is no reason to suspect the purchase and sale of shares undertaken by the assessee. 7. We noticed earlier that the AO did not establish any link between the assessee and the reports of investigation wing. At this stage, we may refer to the decision rendered by Hon'....
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....hares the said broker had also issued contract notes cum bill for sale and these contract notes and bills were made available during the course of appellate proceedings. On the sale of shares respondent effected delivery of shares by way of Demat instruction slips and also received payment from Kolkatta Stock Exchange. The cheque received was deposited in respondent's bank account. In view thereof, the CIT(A) found there was no reason to add the capital gains as unexplained cash credit under section 68 of the Act. The Tribunal while dismissing the appeals filed by the Revenue also observed on facts that these shares were purchased by respondent on the floor of Stock Exchange and not from the said broker, deliveries were taken, contract note....