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2019 (8) TMI 769 - ITAT KOLKATA
Bogus LTCG - addition u/s 68 - denial of exempt u/s 10(38) on sale of share of M/s KPL - accommodation entry - HELD THAT:- It is noted that the A.O has nowhere in the assessment order referred to any material which can prove the complicity of assessee in the alleged accommodation entry operation. In the light of the documents furnished by the assessee, the authorities below were not justified in invoking the provisions of section 68 in regard to the sale proceeds of shares.
There is no evidence on record to disbelieve that the shares sold through registered share and stock broker. The assessee had produced all evidences to explain the source of the amounts received by the assessee from the brokers. Thus the A.O/CIT(A) was not justified in assessing the sale proceeds of shares as undisclosed income. In the light of the aforesaid documents filed before us and A.O/Ld. CIT(A) and it is noted that similar issue was before the Tribunal in the case of M/s Usha Singhania [2019 (2) TMI 1680 - ITAT KOLKATA] wherein long term capital gain on sale of M/s KPL was allowed by this Tribunal.
Respectfully following the order of the Tribunal of this bench in the case of Usha Singhania (supra), and taking note of the documents filed by assessee to prove the veracity of the transaction and I am inclined to allow the claim of the assessee and direct deletion of the addition of ₹ 11,78,596/-.
Before I part I would like to deal with the case laws cited by the Ld. DR who had submitted 23 judicial pronouncements in his support. I note that the said judicial pronouncements are all distinguishable on facts as well as on law.