Allowing the appeal of the assessee the Tribunal held that long term capotal gains on pennay stocks cannot be assessed as cash credits or undisloced income. It cannot be inferred that the assessee has manipulated the share price merely because it moved up sharply-The AO has to produce material/evidence to show that the assessee/ brokers did price rigging/manipulation of shares. The AO must also show that the relevant evidence produced by the assessee in the form of bills, contract notes, demat statement, bank account etc to prove the genuineness of the transactions are false or fictitious or bogus. (ITA No. 457/Del/2018, dt. 05.11.2018) (AY. 2014-15)
Arun Kumar v. ACIT (Delhi)(Trib.), www.itatonline.org Manoj Kumar v. ACIT (Delhi)(Trib.), www.itatonline.org Nitasha Gupta v. ACIT (Delhi)(Trib.), www.itatonline.org
S. 45 : Capital gains–Long term capital gains from penny stocks-Tribunal held that, it cannot be inferred that the assessee has manipulated the share price merely because it moved up sharply-The AO has to produce material/evidence to show that the assessee/brokers did price rigging/manipulation of shares- The AO must also show that the relevant evidence produced by the assessee in the form of bills, contract notes, demat statement, bank account etc to prove the genuineness of the transactions are false or fictitious or bogus. [S. 10(38), 68, 115BBE]