Assessee had sold shares of Pine Animation Ltd and claimed exemption in respect of long term capital gains. Assessing Officer held that statement of some persons were recorded by DDIT, Kolkata to show that Pine Animation Ltd was a company engaged in providing bogus accommodation entries hence made addition under section 68 of the Act. CIT(A) affirmed the addition. On appeal the Tribunal held that since assessee had submitted details of purchase of shares, payment for purchase of shares through banking channel, and had produced order of SEBI where assessee along with others had been exonerated in any manipulation, it clearly proved genuineness of transaction Since the Assessing Officer had not made any inquiry about genuineness of these transaction on documents submitted by assessee and relied only on evidences collected by DDIT Kolkata which were good only for reopening of assessment and for making an addition holding that transaction were bogus, Assessing Officer should have made inquiries on documents submitted by assessee. In view of categorical finding of regulator SEBI exonerating assessee, and absence of any inquiry by Assessing Officer, addition is deleted. (AY. 2014-15, 2015-16)