Dismissing the appeal of the assessee the Tribunal held that ,the said shares were purchased in off market transactions for which payments were made in cash. The said purchases have been treated as bogus and sham transactions by the Revenue as it is alleged that certain brokers have manipulated and issued pre-dated contract notes which even did not have details such as time of contract, trade number , transaction details etc and payments were also made in cash by the assessee against such sham and bogus purchase with the objective of introducing by manipulating tax free exempt long term capital gains u/s 10(38) of the Act leading to escapement of income from taxation. (ITA. No.995/Mum/2012 dt 2-08-2016)
Ratnakar M. Pujari v. ITO ( Mum) (Trib)
S.68: Cash credits – Suspicious transaction in shares- Penny stocks -Capital gains – Off market transactions for which payments were made in cash- Predated contracts – Genuineness was doubted – Addition was held to be justified .[ S.10(38), 45 ]