During the year, the assessee sold shares through a stock broker M\/s Hem Securities Limited and treated the gains as exempt long term capital gains. The AO treated the sale as bogus on the ground that certain information was received from the Investigation Wing as a consequence of a search and seizure action carried out under section 132 of the Act in the case of M\/s Alliance Intermediaries & Network Pvt. Ltd., through which the assessee had effected purchase of the impugned shares in the immediately preceding year. As a result, the sale consideration has been treated as income from undisclosed sources on the ground that there was no real sale and purchase of shares.<\/p>\n
Held, the purchase of shares in the immediately preceding year was accepted by the Department in an order u\/s 147 r.w.s 143(3) of the Act. The shares were evidenced by entries in the demat statement and consideration was received through banking channel. There was no clinching material to say that the impugned transaction was bogus. Also, the statement recorded during the search on M\/s Alliance Intermediaries & Network Pvt. Ltd. does not contain any infirmity qua the impugned transaction. Therefore, the addition as income from undisclosed income was liable to be deleted.<\/p>\n","protected":false},"excerpt":{"rendered":"
The purchase of shares in the immediately preceding year was accepted by the Department in an order u\/s 147 r.w.s 143(3) of the Act. The shares were evidenced by entries in the demat statement and consideration was received through banking channel. There was no clinching material to say that the impugned transaction was bogus. Also, the statement recorded during the search on M\/s Alliance Intermediaries & Network Pvt. Ltd. does not contain any infirmity qua the impugned transaction. Therefore, the addition as income from undisclosed income was liable to be deleted<\/p>\n