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TMI Blog2010 (2) TMI 1184X X X X Extracts X X X X X X X X Extracts X X X X ..... the I.T. Act." 2. The Assessing Officer noted that the assessee during the year has sold shares of Marudhar Food & Credit Ltd.,(MFCL) and Mantra Online Ltd.,(MOL) for total consideration of Rs. 22,51,450/- and assessee had shown the capital gain from such transaction at Rs. 20,88,982/-. From the contract note issued by M/s. Bubna Stock Broking Services Ltd., with regard to the transactions inviolving the shares of Marudhar Food & Credit Ltd., as well as from the contract note issued by M/s. Prakash Nahta & Co., in this respect the shares of Mantra Online Ltd.,the AO observed that, details as contained in the contract notes it appears that the shares on-line. However, inquiries with the Calcutta Stock Exchange revealed that no such transact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to accept the capital gains as declared and to tax the assessee in terms of the proviso to section 112(1)(d) r. w. the proviso to the said section." 4. The learned DR submitted that CIT(A) in his order has stated that inquiry should have been made from brokers which the A.O. found were fabricated. It is nowhere clear from the appellate order of the CIT(A) that said inquiries were conducted by virtue of the fact that all the powers are vested in him has not provided on this particular ground/aspect to make fresh inquiry. 5. The learned DR further submitted that it can be seen by common person without knowledge of the law that the assessee has been using the route of stock exchange to create the sources of income and turning the illegal mo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rly confirmed that the shares of both the companies were listed with the exchange. We find that the genuineness of the transactions of purchase and sales of shares. In the remand report it was clearly mentioned that the transaction has been clearly confirmed by the brokers but also through separate letter issued by the brokers dt.6.3.2006. We find that the CIT(A) has called for the remand report and the inquiries were conducted to ascertain whether or not transactions even though they were conducted on-line it has been duly reported by exchange as required by the guidelines issued by the SEBI. The AO has furnished report dt.24.4.2007 wherein it has been mentioned that the brokers and the depository have confirmed the said share transactions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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