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The Tax Publishers Farrah Marker v. ITO [ITA No. 3801/Mum/2011, dt. 27-4-2016] : 2016 TaxPub(DT) 2123 (Mum-Trib) Addition under section 68 on sale of shares in a stock exchange subject to STT *Facts:* Assessee had sold shares of one Shukun constructions Ltd. on stock exchange by paying STT, thus offered Long term capital gains (LTCG) but claimed exemption under section 10(38). Assessing Officer read it as unexplained cash credits on the plea the share being a penny stock thus was manipulated transaction and due to recording statement by one Niraj Singhvi who was the brokers husband. Contract copies, broker notes, share certificates etc. were all produced as evidence by the assessee. Commissioner (Appeals) upheld the addition. On appeal: Held in favour of the assessee that the addition under section 68 was based on surmises and conjectures with no controverted evidence hence rejected.

The Tax Publishers

Farrah Marker v. ITO [ITA No. 3801/Mum/2011, dt. 27-4-2016] : 2016 TaxPub(DT) 2123 (Mum-Trib)

Addition under section 68 on sale of shares in a stock exchange subject to STT

Facts:

Assessee had sold shares of one Shukun constructions Ltd. on stock exchange by paying STT, thus offered Long term capital gains (LTCG) but claimed exemption under section 10(38). Assessing Officer read it as unexplained cash credits on the plea the share being a penny stock thus was manipulated transaction and due to recording statement by one Niraj Singhvi who was the brokers husband. Contract copies, broker notes, share certificates etc. were all produced as evidence by the assessee. Commissioner (Appeals) upheld the addition. On appeal:

Held in favour of the assessee that the addition under section 68 was based on surmises and conjectures with no controverted evidence hence rejected.