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TMI Blog2019 (11) TMI 1845X X X X Extracts X X X X X X X X Extracts X X X X ..... SINGH (JM) For the Assessee : None For the Department : Shri Chaitanya Anjaria ORDER PER SHAMIM YAHYA (AM) :- This appeal by the assessee is directed against the order of learned CIT(A) dated 16.5.2018 and pertains to A.Y. 2014-15. Grounds of appeal read as under :- 1. The grounds mentioned hereunder are without prejudice to one another 1. On the facts and circumstances of the case, Learned Commissioner of Income Tax (Appeals) erred in confirming the addition of Rs. 10,32,480/- of the LTCG U/s 68 made by the Learned Assessing Officer; without considering the fact, "that appellant has sold the Equity Share duly listed in recognised Stock Exchange through the SEBI, BSE & NSE recognised Broker and on which STT has been paid. Further al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r :- 5.2 I have considered the facts of the case, submissions and contentions of the assessee as also the order of the AO. The assessee contends that it has purchased the shares in a genuine and bonafide manner by way of preferential share allotment of shares of M/s Kaushalya Global Ltd (which got subsequently merged with M/s Matra Kaushal Enterprises Ltd). The shares of Kaushalya Global Ltd were dematerialized and after amalgamation with M/s Matra Kaushal Enterprises Ltd., it became the owner of the shares of M/s Matra Kaushal Enterprises Ltd., which were also dematerialized and subsequently sold. It was further submitted that since the payments have been made/received through banking channel, therefore the action of the AO of making the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hase of the said shares and its dematerialization is very important. In the instant case, it is observed that the share certificates of 20,000 shares issued to the assessee of M/s Kaushalya Global Ltd is dated 03.08.2012 and it has been dematerialized as late as 31.07.2013. No reasons have been provided by the assessee either in the assessment proceedings or in the appellate proceedings as to why there was an unusual delay of around a year in getting their Dematerialization. It is also observed that the dematerialization of the shares as well as the time of sale coincides with the spiraling price of the said scrip. 5.5 Moreover, it is observed that the shares of M/s Kaushalya Global Ltd (which got amalgamated with M/s Matra Kaushal Enterp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idering the factual position of the said case, the Hon'ble Court proceeded to confirm the conclusion of the lower authorities that the assessee had indulged in a dubious share transaction meant to introduce the undisclosed income in the garb of long term capital gain. The facts of the case of the assessee are very similar to that of the case of Sanjay Bimalchand (supra). 5.8 In view of the aforesaid discussion, it is apparent that the long term capital gain claimed by the assessee is bogus and with a sole purpose of misusing the exemption provided u/s 10(38). If one considers the peculiar facts of this case, the claim of the assessee of Long term capital Gain does not accord with human probabilities and the ratio of the decisions of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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