Case Law Details
Ashish Manoj Bhatia Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that genuineness of source of purchase and sale of shares thereof remained unexplained and hence concluded that the sale of such shares were only accommodation entry and accordingly addition of entire sale consideration upheld.
Facts- The issue in the present appeal relates to long capital gain on sale of shares claimed as exempt by the assessee under section 10(38) of the Act, being held as bogus and addition made of the entire sale consideration received accordingly to the income of assessee treating entire transaction only as accommodation entry.
Conclusion- The assessee was unable to satisfactorily explain the source of purchase of these shares, stated to be purchased off market, in cash, kept in pool holding of share broker and dematerialized only on the day when sold i.e 06-08-2014. Accordingly, it can be concluded that the sale of these shares by the assessee as only a colorable device /accommodation entry and treated the entire capital gain as income of the assessee.
Held that there was no credible evidence to say that the assessee was having shares till 8.8.2014 and why the shares were with the broker till they were sold was not known. He accordingly held the entire evidences self-serving and stage-managed, and therefore, upheld the addition made by the AO.
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