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2024 (3) TMI 1155 - ITAT MUMBAIAddition u/s 68 - Bogus LTCG - Penny stock transactions - long-term capital gains derived by the assessee on sale of shares of listed companies questioned - entry operators involved in facilitating bogus LTCG to beneficiaries like assessee, which according to AO is nothing but converting the black money of the beneficiaries to white - CIT(A) deleted the addition - HELD THAT:- As decided in the case of PCIT v. Ziauddin A Siddique [2022 (3) TMI 1437 - BOMBAY HIGH COURT] which is found to be relevant in the facts involved in the present case. In the decided case, the issue before the Hon’ble High Court was whether this Tribunal was right in law in deleting the addition made u/s 68 in relation to LTCG derived on sale of shares, ignoring the fact that the shares were purchased from off-market sources and that the sharp rise in prices were not supported by financials. Answering the question raised by the Revenue in the negative, the Hon’ble High Court held that there was a finding of fact that the purchase & sale of shares occured on the platform of stock exchang, upon payment of STT and were supported by documentary ecidences and therefore there was no perversity in the order of this Tribunal. The Court further noted that there was no allegation against the assessee that he had participated in price rigging in the market and therefore dismissed the appeal of the Revenue. We concur with the view of the CIT(A) and uphold the impugned order of the CIT(A) deleting the addition - we direct the AO to allow the LTCG/exemption claimed by assessee u/s 10(38) on sale of shares of M/s Shaleen Textile Ltd. Decided against revenue.
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