Allowing the appeal of the assessee the Tribunal held that ,the assessee has produced contract notes, demat statements etc & discharged the onus of proving that he bought & sold the shares. The AO has only relied upon the report of the investigation wing alleging the transaction to be bogus. He ought to have examined a number of issues such as online trading , statement of the parties were not provided , shares of the company are still traded in the stock exchange etc . The AO has simply relied upon the report of the investigation wing . The capital gains are genuine and exempt from tax , however the reassessment is held to be valid . (ITA No 8703/Del/2019 dt 29-06 -2020 ) (AY. 2011-12)
Suresh Kumar Agarwal v. ACIT (2020) 117 taxmann.com 678( Delhi) (Trib) www.itatonline.org
S. 10(38) : Long term capital gains from equities -Penny stocks – Produced contract notes, demat statements etc & discharged the onus of proving that the shares were bought and sold -Merely relying upon the statement of investigation wing , the transaction cannot be treated as bogus- Denial of exemption is held to be not valid – Reassessment is held to be valid . [ S.45 , 68 147 ,148 ]