Case Law Details
ACIT Vs Arihant Kumar Jain (ITAT Delhi)
Genuineness of transaction is to be proved by person who substantially asserts the same
Facts- Assessee claimed capital gain of INR 2,72,85,500 as exempt under section 10(38). During search AO reached the conclusion that the entire funds have been received by assessee from the sale of penny stock and the actual source of credit was unaccounted cash of the assessee as held by investigation and thereby treated the credit in the bank account of the assessee as unexplained income u/s 68 of the Act and thereby added total amount of Rs.2,77,46,000/- to the income of the assessee u/s 68 of the Act and thereby framed the total assessment at Rs.3,27,82,030/-under section 143 (3) of the Act.
Conclusion- We are of the considered view that the entire transaction as to purchasing and selling of 40,000 shares of M/s. Kappac Pharma Limited is a colourable device to convert unaccounted money into fictitious exempt LTCG to evade taxes
A transaction needs to be proved to be genuine by the person who substantially asserts the same. Once the assessee has been called upon to prove the genuineness of the trading of the shares leading to LTCG gain, the onus lies upon him which he fails to discharge in the present matter.
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