The Assessee had entered into a transaction of sale of shares held in a company. The sale took place through Stock Exchange via a registered Stock Broker after payment of Securities Transaction Tax. Assessee claimed exemption under S.10(38) in respect of the said sale transaction. During the assessment proceeding, the assesse submitted all the relevant documents supporting the purchase of shares made in cash, with sale contract notes and bank statements and dematerialised statements. However, the price of shares skyrocketed without the essential parameters for increase in price. Hence the AO held such transaction to be a sham transaction in the Assessment order passed. The AO\u00a0 treated the gains as unexplained cash credit under S.\u00a0 68 and taxed the same at 30 per cent under S. \u00a0115BBE\u00a0in the hands of the Assessee. The CIT (A) upheld the AO\u2019s order. The Tribunal, on appeal held-Documentary evidence provided cannot be brushed aside on probabilities and suspicions without pointing out the defect therein. Prices of shares depend upon innumerable factors. Reliance placed upon the statement of Investigation Wing cannot be applied to all the cases blindly. Securities and Exchange Board of India in a subsequent decision, absolved the companies involved in artificial rigging of price of shares, this fact vitiates the revenues case. Held that the Assessee is entitled to claim exemption under S.\u00a0 10(38) of the Act. (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains-Gains from equities-Entire documentary evidence not disputed and no rebuttal to explanation of assessee-no adverse materials against assessee-No proper enquiry conducted on documentary evidence filed-Assessee entering into genuine transaction of sale and purchase of shares-Entitled to exemption. [S. 10(38), 68, 115BBE]. <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10553","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2Kd","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10553"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10553\/revisions"}],"predecessor-version":[{"id":10554,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10553\/revisions\/10554"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}