The assessee purchased the shares of company named Radford Global Ltd & Blazon Marble Ltd\u00a0 through off market on preferential allotment . The assessee submitted before the Assessing Officer , bank details , statements, allotment letters , DEMAT statements , contract notes , STT payment\u00a0 invoices\u00a0 ledgers etc . The Assessing Officer\u00a0 considered the transactions a bogus and mere accommodation entries\u00a0 and treated the sale proceeds as unexplained cash credit under section 68 and added estimated commission u\/s 69C of the Act\u00a0 on the ground that the both the companies were investigated by SEBI authorities and the prices were artificially rigged . On appeal the CIT( A) affirmed the addition . On appeal the Tribunal held that \u00a0the transactions could not be treated as sham merely\u00a0 because they have done in off market , the assessee had discharged his onus of proving fact that shares purchased by him was dematerialised in the DEMAT account . In\u00a0 none of the SEBI orders or investigations , the name of the assesee is directly appearing or alleged . The assessee or broker are not one of the parties who SEBI has proceeded against . Accordingly the Tribunal held that \u00a0\u00a0merely on the basis of surmises , suspicion and conjecture , without any independent verification addition cannot be made as cash credits . Accordingly the\u00a0 denial of exemption is not justified . Estimated commission u\/s 69C of the Act was also deleted \u00a0.Decision in \u00a0\u00a0PCIT v. Swati Bajaj reported in\u00a0 (2022) 139 taxmann.com 352 \/288 Taxman 403\/\u00a0 446 ITR 56\u00a0 ( Cal ) (HC) distinguished ..(ITA Nos . 1605\/ 1612 \/Mum\/2021\u00a0 dt .3-2 -2023) ( AY. 2015 -16 \u00a0\u00a0\u00a0\u00a0\u00a0)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits \u2013 Penny stock \u2013 Long term capital gains- Merely on the basis of surmises , suspicion and conjecture , without any independent verification addition cannot be made as cash credits \u2013 Denial of exemption is not justified \u2013 Estimated commission u\/s 69C of the Act was also deleted .[ S. 10(38), 46 , 69C ] <\/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-34858","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-94e","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34858","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=34858"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34858\/revisions"}],"predecessor-version":[{"id":34859,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/34858\/revisions\/34859"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=34858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=34858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=34858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}