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| The Tax Publishers2019 TaxPub(DT) 0277 (Guj-HC) INCOME TAX ACT, 1961
Section 68
Where genuineness of share transactions was duly proved by assessee bringing on record contract notes for sale and purchase, bank statement of broker and demat account showing transfer in and out of shares, AO was not justified in bringing to tax capital gain arising from sale of shares as unexplained cash credit.
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Income from undisclosed source - Addition under section 68 - Unexplained cash credit -
Assessee claimed capital gain on a sale of shares. AO after seeking details from the parties treated the sum credited in the books of account as unexplained cash credit under section 68 on the ground that there was absence of broker-client agreement. Held: Genuineness of the transactions was already proved by the contract notes for sale and purchase, the bank statement of the broker, the Demat Account showing transfer in and out of shares, as also abstract of transactions furnished by the CSE. Hence, assessee had furnished complete details which were not found false or bogus by the AO and that it was only on suspicion that AO had treated the capital gain declared by the assessee as unexplained cash credit under section 68.
REFERRED :
FAVOUR : In assessee's favour
A.Y. :
IN THE GUJARAT HIGH COURT
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