2010 (12) TMI 59 - HC - Income Tax

Long Term Capital Gain - assessing officer treated the sale transaction to be sham and added the entire sale price as income under Section 68 of the Income Tax Act - Held that - transaction of sale of share was conducted through the borker, who had confirmed the sale and then the transaction was done through Calcutta Stock Exchange - is no illegality in the same - Appeal is dismissed

Summary

The assessee showed Long Term Capital Gain in her return for the assessment year 2003-04. The assessing officer treated the sale transaction as sham and added the entire sale price as income under Section 68 of the Income Tax Act. The Commissioner of Income Tax (Appeals) deleted the addition, which was confirmed by the Income Tax Appellate Tribunal. The High Court dismissed the appeal, stating that the transaction was conducted through a broker and the Calcutta Stock Exchange, finding no illegality in the process.