9911796707
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Issues involved:
The judgment involves the issue of denial of claim of exemption under section 10(38) of the Income Tax Act, 1961, and addition of undisclosed income on account of long-term capital gains. Summary: Issue 1: Denial of claim of exemption under section 10(38) of the Act The appeal was against the order of the CIT(A) regarding the denial of exemption under section 10(38) of the Act. The AO observed that the assessee claimed long-term capital gains to be exempt under section 10(38) but had suspicions regarding the genuineness of the transactions. The AO required detailed information and evidence from the assessee to justify the claim, including broker-client agreement, ledger details, D-mat account, purchase and sales contract notes, bank account transactions, proof of STT payment, and proof of transactions on a recognized stock exchange. The AO found discrepancies and suspicions related to the transactions, leading to the rejection of the claim of exemption under section 10(38). Issue 2: Addition of undisclosed income on account of long-term capital gains The AO added the amount of long-term capital gains to the total income of the assessee as income from other sources, based on suspicions and lack of convincing evidence provided by the assessee. The CIT(A) confirmed this addition, leading to the filing of the appeal. During the appellate proceedings, the assessee argued for the genuineness of the share transactions and provided detailed submissions. The Tribunal considered the evidence presented by both parties, including proof of purchase and sale of shares, and found that the transactions were genuine. The Tribunal noted that the AO had acted on suspicion alone and allowed the appeal of the assessee on merits, partly allowing the appeal. In conclusion, the Tribunal allowed the appeal of the assessee on the grounds of genuine transactions and lack of concrete evidence supporting the addition of undisclosed income on account of long-term capital gains.
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