The Assessing Officer treated unsecured loans received from a Kolkata-based company as unexplained cash credits under section 68 on the ground that the lender’s funds were sourced from share premium. The Tribunal held that the assessee had produced loan confirmations, bank statements, income-tax returns and financial statements of the lender establishing its identity, creditworthiness and the genuineness of the transaction. The lender’s assessments had also been accepted by the Department. Since the assessee had discharged the burden cast upon it under section 68, the Commissioner (Appeals) was justified in deleting the addition. The Assessing Officer treated the exempt long-term capital gains earned on sale of listed shares as bogus penny stock transactions and added the entire sale proceeds under section 68. The Tribunal held that the assessee had established the purchase and sale of shares through contract notes, demat account, stock exchange records and banking channels. Mere statements of alleged entry operators, without linking the assessee to any manipulation, could not justify denial of exemption. The deletion of the addition by the Commissioner (Appeals) was upheld.\u00a0 (AY. 2014-15).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 68 : Cash credits-Unsecured loans-Identity, creditworthiness and genuineness established-Addition deleted- Penny stock- Long-term capital gains-Penny stock-Essar (India) Ltd-Purchase and sale supported by demat account and banking records-Exemption allowable.[S 10(38), 45] <\/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_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63680","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gz6","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63680","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=63680"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63680\/revisions"}],"predecessor-version":[{"id":63681,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63680\/revisions\/63681"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}