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TMI Blog2014 (4) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... f purchase and sale of shares are genuine - Department failed to disprove claim of assessee - Do not find any fallacy or infirmity in finding of CIT(A) and uphold same – Decided against Revenue. - ITA Nos. 318/JU/2013 - - - Dated:- 24-10-2013 - Shri Hari Om Maratha And Shri N. K. Saini,JJ. For the Petitioner : Shri K. K. Boob For the Respondent : Shri N. A. Joshi ORDER Per Hari Om Maratha, J.M. This appeal filed by the department is directed against the order of the CIT(A), Jodhpur, dated 01.03.2013 for A.Y 2005-06. 2. The sole ground raised in this appeal is regarding trading income of Rs. 11,07,548/- as Long Term Capital Gains [LTCG] earned on shared transaction. 3. Briefly stated, the facts of this issue are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rty, namely, M/s B.C. Purohit Co. u/s 132 of the Act, that certain share brokers registered with Calcutta Stock Exchange were engaged in the bogus transactions in shares of certain companies and that M/s Prakash Chand Nahata was also one of them against which the SEBI had initiated enquiry for his trade in the shares of the companies. On that assumption and presumption, after discussing the character of such transactions, the A.O. has finally rejected the claim of the assessee and made addition of Rs. 11,07,548/- in assessee s income of the year. Aggrieved, the assessee filed appeal and the ld. CIT(A) approved reassessment proceedings which were also challenged before him. On merits, he has found that the transportation of sale of shares ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... price was made by account payee cheque. The shares were duly transferred in favour of the assessee in her DMat Account. These shares were held, owned and possessed by the assessee for more than 12 month. The shares sold by the assessee were sold through registered brokers, duly approved by SEBI and the Stock Exchange The sale price was received from the said registered broker by account payee bank draft/account payee cheque. The shares sold by the assessee were duly transferred from her D-Mat Account in favour of the transferee through the registered broker. The entire transactions of purchase and sale of shares were duly supported by brokers contract notes, bills for purchase and sales of shares issued by the approved stockbrokers. 4.4.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... akes purchase and sale shares of companies whose prices are abnormally fluctuating every day have indulged in buying of bogus profit. There can be a genuine person who enters in the market at small level and he may earn a substantial profit in short span of time. 4.4.3. The Assessing Officer has not supplied copy of any material, statement or evidence admissible in law to the appellant to prove that the aforesaid transactions of shares carried out by the assessee were not real. A reference of proceedings of search conducted at the premises of M/s. B. C. Purohit Co. without containing any specific or direct material in relation to the aforesaid transactions of shares carried out by the appellant and without producing any person for cross ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceeds of Rs. 11,07,548/- as income from other sources. The Assessing Officer is directed to treat same as long term capital gain earned on share transaction. The ground no. (1) is allowed. Now the revenue is aggrieved and has filed this appeal. 4. We have heard the rival submissions and have carefully perused the entire material on record. Both the parties have reiterated their arguments which were taken before the ld. CIT(A). After considering the rival submissions, we have found it for a fact that the assessee had disclosed income from sale of shares as LTCG. The A.O. has not allowed this claim only on suspicion based on a search conducted in the case of a third party and none of the evidence found therein were contradicted to her ..... X X X X Extracts X X X X X X X X Extracts X X X X
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