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CIT v. Alpine Investment (Cal)(HC),www.itatonline.org

S. 68: Cash credits- Capital gains- Penny stocks- Share transaction is supported by contract notes, bills, were carried out through recognized stockbroker of the Stock Exchange and all payments made to, and received from, the stockbroker, were through account payee instruments- A transaction fully supported by documentary evidences cannot be brushed aside on suspicion and surmises- Statement given earlier was retracted in cross examination-Brokers statement was recoded –Deletion of addition by the Tribunal is held to be justified . [ S.45,132(4) ]

Dismissing the appeal of the revenue the Court held that ,Share transaction  is supported by contract notes, bills, were carried out through recognized stockbroker of the Stock Exchange and all payments made to, and received from, the stockbroker, were through account payee instruments. A transaction fully supported by documentary evidences cannot be brushed aside on suspicion and surmises. Statement given  by the partner earlier was retracted in cross examination. The stockbrokers asserted that these transactions were genuine.Deletion of addition by the Tribunal is held to be justified .  ( ITA No. 620 of 2008 GA No.2589 of 2008, dt. 26.08.2008)

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