Assessing Officer disallowed assessee’s LTCG claim on sale of shares, alleging bogus transactions due to offline share purchase, sharp price rise, and third-party admissions about accommodation entries. CIT(A) up held the order of the AO. On appeal the Tribunal held that   no concrete evidence was presented to link assessee to price rigging or bogus transactions and moreover, share purchase was legitimately, done through banking channels, and duly dematerialized and AO’s acceptance of genuineness of purchase contradicted claim of a bogus sale. Addition was made by Assessing Officer based on statements/information received from 3rd party, but no opportunity was afforded by revenue for cross-examination which was against principles of natural justice. Offline purchase of share is not prohibited under statute and sharp rise in price of script cannot be a sole criterion for reaching to conclusion that price was rigged up to generate long-term capital gain which was exempted under section 10(38).Therefore  capital gain earned by assessee could not be held bogus merely based on some report finding unearthed in case of third party/parties unless cogent material was brought against particular assessee on record. Addition is deleted. (AY. 2011-12)