Assessee purchased shares of two companies . Later, these shares were sold through a registered share broker in a recognised stock exchange – Assessee claimed exemption under S.\u00a0 10(38) in respect of long term capital gain (LTCG) derived from sale of shares . AO\u00a0 held that in absence of sound financial result prices of shares were artificially hiked to create non-genuine LTCG to beneficiaries .AO\u00a0 also \u00a0referred to statements recorded in other cases of various brokers by investigation wing and held that transactions of assessee were sham transactions and LTCG declared was unexplained cash credit . CIT (A) affirmed the order of the AO . On appeal the Appellate Tribunal held that transactions of assessee of purchase of shares in question, holding of shares for more than one year and sale of shares through registered share broker in a recognised stock exchange and payment of Securities Transaction Tax (STT) thereon, all were supported by documentary evidences and revenue could not point out any specific defect with regard to documents so submitted by assessee. Alleged report of investigation wing was neither confronted to assessee nor was there any inquiry from where it transpired that assessee was beneficiary of any bogus long-term capital gain .\u00a0 Accordingly addition as cash credit was deleted. ( AY. 2014 -15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S.45: Capital gains- Sale of shares \u2013 STT paid \u2013 Sale of shares through a registered share broker in a recognised stock exchange – Addition cannot be made as cash credits – Entitle to exemption [ S.10(38) 68 ]<\/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":[21],"tags":[],"class_list":["post-12807","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3kz","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12807","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=12807"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12807\/revisions"}],"predecessor-version":[{"id":12808,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/12807\/revisions\/12808"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=12807"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=12807"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=12807"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}