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TMI Blog2023 (10) TMI 1228X X X X Extracts X X X X X X X X Extracts X X X X ..... ract note of purchase was issued; shares were sold on the floor of stock exchange; contract note of sale was issued; the deliveries were taken into and given from De-mat A/c within normal time; the payment and receipt of considerations were made through bank a/c (not in cash). Therefore, the transactions are well-explained with the support of all documentary evidences and there is no infirmity or fallacy at any stage of transactions. Thus AO is not justified to disallow the short-term loss declared by assessee. Decided in favour of assessee. - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER For the Assessee by Shri S.S. Deshpande, CA For the Revenue by Shri Ashish Porwal, Sr. DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, the assessee has come in next appeal before us. 4. Ld. AR for assessee carried us to assessment-order and submitted that the AO has observed that the assessee was engaged in the business of shares as well investment in shares. The AO further observed that the assessee sold 25,000 shares for a sum of Rs. 4,18,866/- which were purchased for Rs. 7,47,019/-; thereby declared a short-term loss of Rs. 3,28,153/-. The shares were purchased through broker M/s Exclusive Securities Ltd. The shares were credited at the time of purchase and debited at the time of sale in Demat A/c. These facts are clearly admitted by AO in Para No. 5 of assessment order and there is no dispute. But the AO, in Para No. 7 to 9 of assessment order, made analysis a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt decision of Hon ble Mumbai High Court in the case of PCIT, Mumbai Vs. Indravandan Jain HUF, Income-tax Appeal No. 454 of 2018, order dated 12.07.2023, copy of the order is filed before us. Ld. AR read over Para No. 3 to 5 of the order line by line in the open court. These paras are re-produced below for an immediate reference: 3. Respondent had shown sale proceeds of shares in scrip Ramkrishna Fincap Ltd. (RFL) as long term capital gain and claimed exemption under the Act. Respondent had claimed to have purchased this scrip at Rs. 3.12/- per share in the year 2003 and sold the same in the year 2005 for Rs.155.04/- per share. It was A.O. s case that investigation has revealed that the scrip was a penny stock and the capital gain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ebited. The shares were also transferred into respondent s Demat account where it remained for more than one year. After a period of one year the shares were sold by the said broker on various dates in the Kolkata Stock Exchange. Pursuant to sale of shares the said broker had also issued contract notes cum bill for sale and these contract notes and bills were made available during the course of appellate proceedings. On the sale of shares respondent effected delivery of shares by way of Demat instructions slip and also received payment from Kolkata Stock Exchange. The cheque received was deposited in respondent s bank account. In view thereof, the CIT[A] found there was no reason to add the capital gains as unexplained cash credit under Sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rchase and sale as well as the payment received from/made to assessee by broker. (d) The assessee paid purchase price from bank a/c and also received sale consideration in bank a/c (Copy of bank statement at Page No. 18 of Paper-Book). Neither the purchase consideration has been paid in cash nor the sale consideration has been received in cash. (e) Immediately after purchase, the shares were credited to De-mat A/c on 09.03.2012 and immediately after sale the share were debited to De-mat A/c on 23.03.2012 within a reasonable time as per rules of stock-exchange (Copy of de-mat A/c at Page No. 13 of Paper-Book). 7. Ld. AR submitted that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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