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Many thanks Mr Sai for the valued citation.

I have come across a case wherein a well managed company has allowed exemption amounting to more than `60,000/- in form No 16. However under sec 16 (ii), the Entertainment Allowance is specifically taxable in case of non-government employees and or exempt up to ` 5000 only in the hands of Govt employees.
Can the Entertainment Allowance be considered for exemption under section 10(14) also?  ??? I am sorry if i sounded stupid

Thanks CA Manoj for the valued opinion.
May I seek attention of other experts with more case laws and technical aspects of such transactions - what is the point of transfer, who paid STT, etc. Its true that shares were taken out by the bank for the purpose of effecting sale and the proceeds were remitted into the borrwer's a/c only

A and B had jointly taken overdraft facility from Bank under Loan Against Securities scheme jointly. They both pledged their holdings held in their separate demat a/cs.
After three years, when the account became irregular, the pledge was invoked and shares (security) were sold through BSE and NSE. From perusal of contract notes and the DP a/c narrations, it seems that: -
1. The pledged shares were first transferred into the demat a/c. of the bank before sale through stock exchange.
2. In all Contract Notes, the first named person is the HDFC Bank and the second named is A (first named person in loan a/c)
3. There is no mention of B (second borrower) in the Contract Notes even in the shares held in the demat account B.
4. No valid PAN is quoted in Contract Notes.
In view of the provisions of the Income tax Act [also sec 2(47)] and technicalities of the agreement of Loan Against Securities, kindly advice me if A and B are entitled for exemption of Long Term capital Gain u/s 10(38) IT Act.
Thanks and regards