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| The Tax Publishers2021 TaxPub(DT) 0593 (Luck-Trib) INCOME TAX ACT, 1961
Section 68
Assessee had purchased shares of CCL International Ltd. and made payment for purchase of such shares through cheques and these were purchased from Suktara Trade Links Pvt. Ltd. The shares were held in demat account and after holding for a period of about 1½ years, the same were sold through registered broker M/s. Edelweiss Broking Limited through screen based trading and proceeds were credited to the bank account of assessee after deduction of STT. The transaction statement placed on record also proved that assessee was holding a number of scrips. All the documents clearly demonstrated that assessee did earn long-term capital gain and moreover AO had not doubted any of the above documents. Accordingly, genuineness of the transaction was proved and AO was, therefore, not justified to make addition under section 68.
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Income from undisclosed sources - Addition under section 68 - Long-term capital gain on sale of shares alleged to be bogus based on investigation report -
AO based on information emanated from investigation wing in case of certain party took the view that shares of CCL International Ltd. was a penny stock and long-term capital gain declared by assessee on said stock was bogus. Accordingly, AO made addition under section 68. Held: Assessee had purchased shares of CCL International Ltd. and made payment for purchase of such shares through cheques and these were purchased from Suktara Trade Links Pvt. Ltd. The shares were held in demat account and after holding for a period of about 1½ years, the same were sold through registered broker M/s. Edelweiss Broking Limited through screen based trading and proceeds were credited to the bank account of assessee after deduction of STT. The transaction statement placed on record also proved that assessee was holding a number of scrips. All the documents clearly demonstrated that assessee did earn long-term capital gain and moreover AO had not doubted any of the above documents. Accordingly, genuineness of the transaction was proved and AO was, therefore, not justified to make addition under section 68.
Applied:Reeshu Goel v. ITO ITA. No. 1691/Del/2019 vide Order, dated 7-10-2019. Distinguished:Karuna Garg ITA No. 1069 ; 2019 TaxPub(DT) 5700 (Del-Trib), Swati Luthra v. ITO ITA No. 6480/Lkw/2019, dated 28-6-2019 : 2019 TaxPub(DT) 4904 (Del-Trib) and Udit Kalra v. ITO ITA No. 220/2019 vide Order, dated 8-3-2019 : 2019 TaxPub(DT) 3068 (Del-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, LUCKNOW BENCH
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