Case Law Details
Amarjit Kaur Surinder Singh Kochhar Vs ITO (ITAT Mumbai)
Addition u/s 68 unjustified as evidences proving genuineness of purchase and sale of shares submitted: ITAT Mumbai
ITAT Mumbai held that addition under section 68 of the Income Tax Act unsustainable as assessee has established the genuineness of purchase and sale of shares by producing documentary evidence and transaction of purchase and sale of shares is done via banking channel.
Facts- During the course of reassessment proceedings, found that the assessee has earned long term capital gains (LTCG) on sale of shares of M/s Access Global Ltd.
Notably, the assessee has purchased 300 shares of Rs.10/- paid up each of M/s Sea view Suppliers Ltd at Rs.484/- per share from M/s. Kalimata Tradecom Pvt Ltd through cheque on 24-08-2011 for Rs.1,45,200/- as per the purchase invoice bill. Subsequently the M/s Sea view Suppliers Ltd shares were amalgamated with M/s Access Global Ltd as per the decision of the Hon’ble High Court of Calcutta order dated 15.11.2011. Since the M/s Seaview Suppliers Ltd was amalgamated, the assessee was allotted shares in the ratio of 1:47 shares of M/s Access Global Ltd and the assessee was allotted 14,100 shares of Access Global Limited.
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