ITAT confirms addition for Bogus LTCG

M/s Pankaj Agarwal & Sons (HUF) Vs ITO (ITAT Chennai) Facts – Assessee return was selected for scrutiny, wherein, AO treated purchase and sale of shares of M/s. SRK as sham transactions and claim of exemption u/s 10 (38) was denied and the same was treated as unexplained cash credit u/s 68. AO argued that the company in which the assessee had purchased equity shares had no creditability and no prudent investor would make such investment. As per investigation report, the members who participated in the trading of the scrip during mid-2013 to mid-2014 were part of syndicate of brokers and ...