Case Law Details
JCIT Vs Amandeep Singh Bhatia (ITAT Indore)
Aassessee in his return of income declared a long-term capital gain exempted u/s 10(38) of the act, earned from sale of 88,550 equity shares of 21st Century Finance Ltd. The assessee claimed to have purchased the impugned shares for Rs. 7,70,856/- in the year 2004-05; sold the same for Rs. 2,55,72,940/- in the year 2008-09 and thereby earned the capital gain of Rs. 2,48,02,084/-. The case was selected for scrutiny and the statutory notices u/s 143(2) and 142(1) were issued from time to time. The AO confronted the assessee on the capital gain declared in return, in response to which the assessee submitted details/documents. However, the AO was not satisfied and finally did not accept the exempted gain declared by assessee. Hence, the AO made an addition of Rs. 2,48,02,084/- as income from other sources and taxed accordingly. Being aggrieved, the assessee carried the matter in first-appeal and succeeded. Now, the revenue has come in this appeal assailing the order of first-appeal.
On appeal ITAT held as follows:-
(i) The assessee provided all necessary details and documentary evidence regarding the purchase, sales, and holding of the shares in question. The AO did not find any issues with these documents.
(ii) The shares were bought and sold through a recognized stock exchange using account-payee cheques for transactions. The purchased shares were immediately credited to the assessee’s demat account and held for a significant period before selling. The assessee continued to hold a remaining quantity of shares even after the sale. The AO did not find any negative aspects regarding these factors.
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