ITAT deletes addition for LTCG made without Independent Verification

Anusmriti Sarkar Vs ITO (ITAT Mumbai)

LTCG From Kailash Auto Finance Scrip Deleted When AO Made Addition On Surmises On Mere Report Of Investigation Wing Without Independent Verification.

The undisputed facts are that the assessee has earned a capital gain of Rs.1,01,71,119/- on the sale of scripts namely M/s. Surabhi Chemical and Investment Ltd. and M/s. Kailash Auto Finance Ltd. The facts qua the purchase and sale of shares and necessary evidences were already discussed hereinabove and are not being repeated for the sake of gravity. We note that assessee has filed all the evidences comprising summary of sale and purchase of shares, contract notes/broker notes, details of Dmat account/transaction statement, copies of purchase bills, evidences of payment through banking channels along with bank statements etc. We note that the authorities below have relied merely on the report of investigation wing and SEBI by ignoring the facts on record. We further note that in the case of M/s. Kailash Auto Finance Ltd. the various co-ordinate benches of the Tribunal at Kolkata have decided the issue in favour of the assesse.

We note that the assessee has filed all the evidences and the authorities below could not bring out any material to prove that the capital gain earned by the assessee is bogus except the attribution by the investigation wing and SEBI. In view of these facts and circumstances, the order of ld. CIT(A) can not be sustained.

FULL TEXT OF THE ORDER OF ITAT MUMBAI

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