On the basis of information from Investigation Wing the AO added amount of long-term capital gain as cash credits and also estimated commission. CIT(A) affirmed the order of the AO. On appeal by the assessee, allowing the claim of the assessee the Tribunal held that the shares were purchased by account payee cheque, transaction was credited in DMAT account, opportunity of cross examination was not given. Accordingly the sale transaction cannot be treated as bogus merely on the basis of suspicious or surmises. Estimation of commission was also deleted. (AY. 2013-14, 2015-16)
Meghraj Singh Shekhawat v. DCIT (2019) 175 ITD 693 / 197 TTJ 278 (Jaipur) (Trib.)
S. 45 : Capital gains- cash credits–Bogus accommodation entries- Penny stock – Sale of shares-Purchase by account payee cheque– Transaction was credited in DMAT account-Opportunity of cross examination was not given-Sale transaction cannot be treated as bogus merely on the basis of suspicious or surmises-Addition was deleted–Estimation of commission was also deleted. [S. 10 (38), 68, 69C, 132(4)]