In the return of income assessee\u00a0 claimed\u00a0 long term capital gain arising from sale of shares as exempt under S. 10(38) of the Act. On the basis of information from Investigation Wing that number of penny stock companies were providing bogus entries of long-term capital gain on sale of their shares and\u00a0 Kappac Pharma\u00a0 Ltd. was one of those companies. AO\u00a0 carried out detailed investigation and found that assessee’s transactions of sale of shares of Kappac Pharma\u00a0 Ltd.\u00a0 were sham.\u00a0 Accordingly added amount of long-term capital gain under S.69A of the Act. Tribunal held that\u00a0 the assessee had failed to discharge her burden of proof that long-term capital gain arising from sale of shares was genuine.\u00a0 On other hand, enquiry conducted by SEBI was further corroborated by investigation carried out by Directorate of Investigation that Kappac Pharma Ltd. was one of such companies whose scrips had been manipulated to provide bogus long-term capital gains. Accordingly the addition made by AO is confirmed . (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 69A : Unexplained money-Capital gain-Penny stock-Sale of share-Bogus entries-Information from investigation wing-Addition is held to be justified. [S. 10(38), 45, Indian Evidence Act. S. 102]<\/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-6376","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-1EQ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6376","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=6376"}],"version-history":[{"count":3,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6376\/revisions"}],"predecessor-version":[{"id":6911,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/6376\/revisions\/6911"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=6376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=6376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=6376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}