Case Law Details
Amit Jindal Vs ITO (ITAT Delhi)
Facts- The assessee is an individual and derives income as partner in the firm Jindal Aluminum Company, income from capital gains and income from other sources.
The assessee had purchased 5000 shares of Esteem Bio Organic Food Processing Ltd. on 15.06.2012 for a consideration of Rs.50,000/-. Subsequently, the assessee was allotted bonus shares in the ratio 1:3 which resulted into 15000 shares. The shares were de-mated on 17.11.2017. Out of above 15000 shares, the assessee sold 11000 shares for a consideration of Rs.46,91,079/-. After deducting the cost of acquisition of Rs.50,000/-, the assessee declared Long Term Capital Gain of Rs.46,41,079/- which was claimed as exempt u/s 10(30) of the Act. AO rejected the claim of LTCG and exemption on the ground that share transactions are not genuine and that the assessee is not a regular investor in the share market and has not done any transaction in the share market.
Conclusion- Held that the Revenue has failed to comply to the direction of the Bench in furnishing any report from the AO as to in what manner, the investigation carried out by the Directorate of Investigation, Kolkata and report of SEBI has any link with the transactions carried out by the assessee, we allow the claim of Long Term Capital Gain on account of sale of shares of M/s Esteem Bio Organic Food Processing Ltd. and consequently the exemption claimed u/s 10(38) of the Act.
FULL TEXT OF THE ORDER OF ITAT DELHI
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