Bogus Capital Gain- Addition cannot be made merely on assumption that brokers may have done manipulation

DCIT Vs Rakesh Saraogi & Sons (HUF) (ITAT Raipur) The bone of contention is the sale of shares of Gautam Resources Limited and Naxgeshwar Investment Ltd. In some enquiry made by the DDIT, Kolkata some brokers were found to be engaged in clandestine activities in the stock exchange by which share prices of certain scrips were found to be manipulated giving rise to Long Term Capital Gains. The assessee has done transaction with one of such broker namely P.K. Agrawal. P.K. Agrawal was examined by the DDIT (Inv.), Kolkata who in his statement explained the modus operandi of artificially jackin...