The Respondent had shown sale proceeds of shares in scrip Ramkrishna Fincap Ltd. (RFL) as long term capital gains and claimed exemption under the Act. Respondent had claimed to have purchased this scrip at Rs.3.12\/- per share in the year 2003 and sold the same in the year 2005 for Rs.155.04\/- per share . \u00a0The Assessing Officer held that \u00a0investigation has revealed that the scrip was a penny stock and the capital gain declared was held to be accommodation entries. A broker Basant Periwal & Co \u00a0\u00a0through whom these transactions have been effected had appeared and it was evident that the broker had indulged in price manipulation through synchronized and cross deal in scrip of RFL. SEBI had also passed an order regarding irregularities and synchronized trades carried out in the scrip of RFL by the said broker. \u00a0The\u00a0 Assessing Officer made addition under section 68 of the Act . On appeal the CIT(A) deleted the \u00a0addition . On appeal by the Revenue, \u00a0the Tribunal Affirmed the order of the CIT(A). Tribunal followed the order of Jurisdictional High Court in \u00a0CIT v. \u00a0Shyam R. Pawar (2015) 54 Taxmann.com 108\/ 229 Taxman 256 \u00a0( Bom)(HC). \u00a0On appeal \u00a0by the Revenue, \u00a0\u00a0dismissing the appeal the \u00a0Court held that The Tribunal while dismissing the appeals filed by the Revenue also observed on facts that these shares were purchased by respondent on the floor of Stock Exchange and not from the said broker, deliveries were taken, contract notes were issued and shares were also sold on the floor of Stock Exchange. \u00a0Order of Tribunal is affirmed . (ITA No. 454 of 2018 dt .12-7 -2023 )( AY. 2005 -06 ) (Arising out of ITA No. 5168\/M\/2014 dt.27 -5 -2016 ).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 45 : Capital gains -Penny Stock \u2013 Cash credits \u2013Accommodation entries – DMAT account and contract note showed details of share transaction- Assessing Officer had not proved said transaction as bogus, capital gain earned on said transaction can not be treated as cash credits – Addition as cash credit was deleted- Order of Tribunal allowing the exemption was affirmed . [ 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-35095","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-983","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35095","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=35095"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35095\/revisions"}],"predecessor-version":[{"id":46542,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/35095\/revisions\/46542"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=35095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=35095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=35095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}