Case Law Details
Mohit Hora (HUF) Vs ITO (ITAT Delhi)
Conclusion: Where sale and purchase of shares had taken place only through banking channel at Bombay Stock Exchange and were supported by contract note, income from long term capital gain (LTCG) on sale of listed equity shares after payment of STT were rightly claimed as exempt u/s 10(38) and AO was precluded in making addition of LTCG as unaccounted income in absence of any supporting evidence.
Held: Assessee filed return of income after claiming the income from long term capital gain on sale of listed equity shares which were subjected to STT as exempt income under section 10(38. AO observed that LTCG was unaccounted income of assessee and added the same to the total income of assessee u/s. 68. AO further held that the tax on these additions would be charged as per section 115BBE. It was held assessee had provided all the documents relating to sale and purchase which had taken place only through banking channel and were supported by contract note from HDFC Securities and the shares of Unno Industries Ltd. being listed shares on stock-exchange were filed by assessee before AO. However, AO had not brought on record any material to support its finding that there had been collusion/ connivance between the broker and assessee for the introduction of assesses own unaccounted money. In view of the above, LTCG claimed by the assessee was resulting from purchases made directly from the seller through a/c payee cheque based on actual delivery of shares, the transaction for sale was through registered broker on the floor of the stock exchange. Consequently, the LTCG cliamed by assessee was genuine and bonafide and allowable for exemption.
FULL TEXT OF THE ITAT JUDGMENT
The Assessee has filed the Appeal against the Order dated 05.12.2017 of the Ld. CIT(A)-1, Gurgaon pertaining to assessment year 2014-15 and raised the following grounds:-
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