Mohan Lal Agarwal (HUF), Ghaziabad V. ITO, ward- 1(4), Ghaziabad

ITA 2767/DEL/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 1450 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 20-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S L ANURAGI
• Keywords: Unexplained cash credit; Accommodation entries; Assessment record
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC NEW DELHI BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER I.T.A. NO.2766/DEL/2018 ASSESSMENT YEAR: 2014-15 MUKTA GUPTA, AKHILESH KUMAR, ADV., CHAMBER NO.206-207, ANSAL SATYAM, RDC RAJ NAGAR, GHAZIABAD. V. ITO, WARD-1(4), GHAZIABAD. TAN/PAN: AHGPG 4685R (APPELLANT) (RESPONDENT) I.T.A. NO.2767/DEL/2018 ASSESSMENT YEAR: 2014-15 MOHAN LAL AGARWAL (HUF), AKHILESH KUMAR, ADV., CHAMBER NO.206-207, ANSAL SATYAM, RDC RAJ NAGAR, GHAZIABAD. V. ITO, WARD-1(4), GHAZIABAD. TAN/PAN: AAJHM 8433Q (APPELLANT) (RESPONDENT) APPELLANT BY: S/SHRI AKHILESH KUMAR, ADV. & PUSHKAR PANDEY, ADV, . RESPONDENT BY: SHRI S.L. ANURAGI, SR.D.R. DATE OF HEARING: 12 11 2018 DATE OF PRONOUNCEMENT: 26 11 2018 O R D E R PER AMIT SHUKLA, J.M.: THE AFORESAID APPEALS HAVE BEEN FILED BY THE ASSESS EE AGAINST SEPARATE IMPUGNED ORDERS OF EVEN DATE, 16.0 1.2018, PASSED BY LD. CIT (APPEALS), GHAZIABAD FOR THE QUAN TUM OF ASSESSMENT PASSED U/S. 143(3) FOR THE ASSESSMENT YE AR I.T.A. NO.2767/DEL/2016 2 2014-15. SINCE FACTS INVOLVED IN ASSESSEES APPEALS ARE COMMON, THEREFORE, SAME WERE HEARD TOGETHER AND ARE BEING DISPOSED OF BY WAY OF THIS CONSOLIDATED ORDER. IN T HE GROUNDS OF APPEAL, THE ASSESSEE HAS CHALLENGED THE DISALLOW ANCE OF EXEMPTION CLAIMED U/S.10(38) FOR RS.24,60,241/- BEI NG LONG TERM CAPITAL GAIN ON SALE OF LISTED EQUITY SHARES I N THE NAME OF MOHAN LAL AGARWAL (HUF) AND SIMILAR DISALLOWANCE OF RS.19,31,075/- IN THE CASE OF MUKTA GUPTA. 2. WE WILL FIRST TAKE UP THE APPEAL IN THE CASE OF MOHAN LAL AGARWAL (HUF), WHEREIN THE BRIEF FACTS ARE THAT THE ASSESSEE IS A HUF WHICH CARRIED OUT BUSINESS OF TRADING IN IRON AND STEEL. THE ASSESSEE HAS CLAIMED EXEMPTION U/S.10(38) OF RS.24,60,241/- ON LONG TERM CAPITAL GAIN RESULTING ON SALE OF SHARES OF M/S. CCL INTERNATIONAL LTD. WHICH WAS PURCHASED FOR RS.97,800 ON 11.05.2009 AND WAS SOLD ON 12.12.2013 FOR RS.26,06,548/- IN THE ASSESSMENT YEA R 2014- 15. LEARNED AO OBSERVED THAT ASSESSEE HAD PURCHASED 10,000 SHARES OF M/S. CCL INTERNATIONAL LTD. ON 11. 05.2009 @ RS.16.30 PER SHARE THOUGH FACE VALUE OF THE SHARE S WERE RS.10 EACH AND THESE WERE LOCKED FOR A PERIOD OF ON E YEAR TEN MONTHS AS PER SEBI REGULATION AND TRADING OF THE SH ARES STARTED FROM 28.11.2011. THEREAFTER HE HAS QUOTED T HE PRICE OF THE SAID SCRIP IN THE BOMBAY STOCK EXCHANGE FROM 06.02.2010 TO 19.12.2016. THE MOMENT OF THE SHARE P RICE FOR EACH DAY STARTING FROM 6 TH FEBRUARY, 2010 TO 19 TH DECEMBER, 2016 HAS BEEN INCORPORATED IN THE IMPUGNED ORDER AN D FROM THE TREND OF SHARE PRICE MOMENT, HE HELD THAT THE P RICE OF THESE SHARES HAD RISEN MANIFOLDS AND THEREBY INFERR ED THAT I.T.A. NO.2767/DEL/2016 3 THE REASON FOR ASTRONOMICAL RISE WAS NOT RELATED TO ANY FUNDAMENTALS OF MARKET. WITHOUT ANY MATERIAL OR INF ORMATION ON RECORD THAT THE ASSESSEE HAD DONE ANY BOGUS TRAN SACTION OR HAS RECEIVED ANY ACCOMMODATION ENTRY OR ASSESSEE S NAME HAS BEEN CROPPED AS A BENEFICIARY OF ACCOMMODATION ENTRY IN ANY OF THE INVESTIGATION, HAS HELD THAT THERE ARE V ARIOUS INSTANCES WHEREBY ENTRY PROVIDERS ARRANGE ACCOMMODA TION ENTRY FOR BOGUS LONG TERM CAPITAL GAIN. PAGES AFTER PAGES AO HAS REFERRED TO MODUS OPERANDI AS TO HOW THE ACCOMM ODATION ENTRY IS PROVIDED BY THE ENTRY OPERATORS. A STATEME NT ON OATH OF THE KARTA OF THE HUF WAS ALSO RECORDED BY HIM ON 19.12.2016 WHICH HAS BEEN INCORPORATED IN THE IMPUG NED ORDER AND ON THE BASIS OF THE STATEMENT HE HAS DEDU CED FOLLOWING POINTS. 1. THAT THE KARTA OF THE HUF ONLY STARTED DEALING IN SHARE TRANSACTION AT THE TIME WHEN HE PURCHASED THESE SHARES AND GOT A D-MAT ACCOUNT ONLY IN THE YEAR 2010. 2. THE COMPANY WHOSE SHARES THE ASSESSEE DEALT IN SPLIT THE SHARES IN F.Y. 2011-12 AND THE TOTAL NUMBER OF SHARES HELD BY THE ASSESSEE INCREASED TO 50000 SHARES FROM 10000 SHARES OF WHIC H THE ASSESSEE SOLD 30000 SHARES IN F.Y. 2013-14 FOR RS. 87/- PER SHARE. 3. THE ASSESSEE ONLY DEALT IN THESE SHARES OF M/S C CL INTERNATIONAL LTD. AND HAS NEITHER PURCHASED NOR SOLD ANY OTHER S HARE WHICH AGAIN LEADS TO SUSPICION. 4. THE SHARES OF THE COMPANY WERE PURCHASED ON THE ADVICE OF HIS ACCOUNTANT. 5. THE ASSESSEE DIDN'T WATCH THE PRICE OF THE SHARE S PURCHASED/SOLD AND ONLY USED TO ENQUIRE ABOUT IT ONCE IN A WHILE. 6. THE AFORESAID FACTS CLEARLY INDICATE THAT THE T RANSACTION IS A SHAM. I.T.A. NO.2767/DEL/2016 4 3. AFTER REFERRING TO VARIOUS JUDGMENTS AND GENERA L DISCUSSION ABOUT HOW THIS MINUS OF BOGUS ACCOMMODAT ION ENTRY PREVAILING IN THE COUNTRY, HE HELD THAT THE E NTIRE SALE CONSIDERATION RECEIVED FROM SALE OF SCRIP IS TO BE ADDED U/S.69A AND THEREBY MADE ADDITION OF RS.26,05,548/- 4. LD. CIT (A) TOO HAS CONFIRMED THE SAID ADDITION AND MADE OBSERVATIONS THAT NO EVIDENCE IN SUPPORT OF GENUINENESS OF PURCHASE OF SHARES AND JUSTIFICATION OF PURCHASE PRICE OF THE SHARE HAS BEEN SUBMITTED BY T HE ASSESSEE. FURTHER, M/S. CCL INTERNATIONAL LTD. HAS BEEN FOUND TO BE PENNY STOCK BY DIT (INVESTIGATION) KOLK ATA. AFTER DISCUSSING VARIOUS CASE LAWS, HE HAS CONFIRMED THE ADDITION AFTER CONCLUDING AS UNDER: 5.1.14 CONSIDERING THAT THE PURCHASE OF SHARES HAS NOT BEEN MADE ONLINE ON STOCK EXCHANGE. THERE ARE NO PROPER BILLS SUPPORTING THE PURCHASE PRICE. THE DETAILS SUBMITTED BY THE APPELL ANT FAILED TO SUBSTANTIATE THE GENUINENESS OF TRANSACTIONS IN SO FAR AS PURCHASE OF SHARES IS CONCERNED. THE SHARES TRANSFERRED BY THE APPELLANT REFLECT SUCH A HUGE PRICE RISE IN THE SHARES OF A DEFUNCT C OMPANY WITHOUT CORRESPONDING FUNDAMENTALS, CORROBORATED BY INFORMA TION RECEIVED FROM INVESTIGATION WING OF DEPARTMENT THAT THE SHAR ES HAVE BEEN TRADED VIOLATING THE SEBI'S GUIDELINES. IN VIEW OF THESE FACTS IT CANNOT BE SAID THAT APPELLANT HAS DISCHARGED THE PRIMARY O NUS OF PROVING THE GENUINENESS OF TRANSACTIONS. HOWEVER, IT IS NOTED T HAT AO HAS ADDED THE ENTIRE SALE CONSIDERATION U/S 69A HOWEVER, ACTU AL MONEY INTRODUCED BY THE APPELLANT IN BOOKS OF ACCOUNTS DU RING THE YEAR IS LONG TERM CAPITAL GAIN I.E. RS. 26,05,548/- (-) RS. 1,63,000/- I.E. RS. 24,42,548/- IS THE ADDITION CONFIRMED U/S 69A R.W.S 115BBE. HENCE, THESE GROUNDS OF APPEAL ARE PARTLY ALLOWED WHILE CO NFIRMING ACTION OF I.T.A. NO.2767/DEL/2016 5 AO OF MAKING AN ADDITION ON ACCOUNT OF BOGUS LONG T ERM CAPITAL GAIN CLAIMED U/S 10(38). 5. BEFORE US, LD. COUNSEL FOR THE ASSESSEE SUBMITT ED THAT ASSESSEE HAD PURCHASED 10,000 SHARES ON 11.05.2009 @ 16.30 PER SHARE FOR A TOTAL AMOUNT OF RS.1,63,000/- OUT OF WHICH RS. 20,000/- WAS PAID IN CASH AND BALANCE RS.1,43,000/- THROUGH CHEQUE. LATER ON, SAID SHARES WERE SUB DIVIDED INTO 50,000/- SHARES IN AUGUST, 2011. S AID SHARES WERE PURCHASED FROM THE DIRECT ALLOTTEE, MR. HIMANSHU POKHARIYAL AND AS SUCH SHARES WERE TRANSFERRED DIRE CTLY FROM THE D-MAT A/C OF HIMANSHU TO THE DEMAT OF ASSESSEE WITH ALLIED SERVICES PRIVATE LIMITED THROUGH E-TRANSFER. OUT OF 50,000 SHARES 20,000 SHARES WERE SOLD IN PREVIOUS Y EAR AND BALANCE 30,000/- SOLD ON 12.12.2013 I.E. IN THE REL EVANT YEAR. SAID SALE IS DULY DECLARED IN RETURN. SALE UNDER QU ESTION IS SUPPORTED WITH FOLLOWING EVIDENCES/DETAILS:- A) CONTRACT NOTE GIVING DATE, TIME SETTLEMENT DETAILS ETC B) STT IS PAID ON TRANSACTION C) TRANSACTION IS THROUGH TRUSTLINE SECURITIES D) SALE IS MADE ON ONLINE MARKET OF BOMBAY STOCK EXCHANGE E) CONSIDERATION IS RECEIVED ELECTRONICALLY IN BANK THROUGH RTGS F) SHARES ARE TRANSFERRED FROM DEMAT ACCOUNT. 6 SHARES WERE PURCHASED ON 11.05.2009 AND WERE SO LD ON 12.12.2013, AND THEREFORE, HOLDING PERIOD OF SHA RES WAS MORE THAN 4 YEARS AND 7 MONTHS. EVEN AFTER ENTERING IN I.T.A. NO.2767/DEL/2016 6 DEMAT OF ASSESSEE HOLDING PERIOD WAS 3 YEARS AND 8 MONTHS. HE FURTHER SUBMITTED THAT RATE OF THE SAID SCRIP AT BSE ON 06.02.2010 TO 09.06.2016 WAS AS PER THE TRADING NOR MS AND CAP PERMITTED BY SEBI AND THE SAID SCRIP WAS REGULA RLY TRADED FOR SIX YEARS. DURING THE PERIOD, THE HIGHEST RATE WAS OVER RS.600/-, HOWEVER WHEN THE ASSESSEE SOLD IT WAS RS. 87/- PER SHARE ON 12.12.2013. THE ASSESSING OFFICER HAS NOT FOUND ANY MATERIAL/ INFORMATION AGAINST THE ASSESSEE NOR AGAINST THE COMPANY, M/S. CCL INTERNATIONAL LTD. BESIDES, T HERE IS NO ALLEGATION/STATEMENT OF ANY PARTY THAT THE SAID TRA NSACTION OR EVEN DEALING IN SHARES OF THE COMPANY WAS FOR BOGUS CAPITAL GAIN. NEITHER THE SAID COMPANY HAS BEEN BLACKLISTED BY SEBI NOR HAS IT BEEN NAMED IN THE LIST OF SHELL COMPANY UPLOADED BY SEBI ON NET. IN THE STATEMENT RECORDED BY THE AS SESSING OFFICER, ASSESSEE HAS GIVEN ALL THE DETAILS AS ASKE D AND NO ADVERSE INFERENCE CAN BE DRAWN FROM THE SAID STATEM ENT. HE ALSO POINTED OUT THAT THE INCOME TAX DEPARTMENT ITS ELF HAS ACCEPTED THE TRANSACTION OF LONG TERM CAPITAL GAIN/ SHORT TERM CAPITAL GAIN IN THE CASE OF M/S. CCL INTERNATI ONAL LTD. NOT ONLY IN THE CURRENT YEAR BUT ALSO IN THE PREVIO US YEARS IN SEVERAL CASES IN SCRUTINY PROCEEDINGS. THUS, WITHOU T ANY MATERIAL ON RECORD, SIMPLY BY GENERAL OBSERVATION A ND CONJECTURES, NO ADVERSE INFERENCE COULD HAVE BEEN D RAWN. HE ALSO FILED VARIOUS JUDGMENTS OF THIS TRIBUNAL AND A LSO ASSESSMENT RECORDS AND THE ASSESSMENT ORDER IN THE CASE OF OTHER ASSESSEES, WHEREIN SIMILAR SCRIP HAS BEEN ACC EPTED QUA THE SAME ASSESSMENT YEAR OR SUBSEQUENT ASSESSMENT Y EAR. I.T.A. NO.2767/DEL/2016 7 7. ON THE OTHER HAND, LEARNED DEPARTMENT REPRESENTA TIVE HAS STRONGLY RELIED UPON THE ORDER OF THE ASSESSING OFFICER AND LD. CIT (A) AND SUBMITTED THAT SUCH A HUGE RISE IN THE PRICE ITSELF SHOWS THAT EVERYTHING WAS NOT RIGHT AN D IN SOME OF THE CASE, INVESTIGATION WING KOLKATA HAS FOUND THAT SCRIP OF M/S. CCL INTERNATIONAL LTD. WERE USED FOR PROVIDING ACCOMMODATION ENTRIES BY THE BROKERS. THUS, THE ORD ER OF THE ASSESSING OFFICER AND LD. CIT (A) NEEDS TO BE CONFI RMED. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND ALSO P ERUSED THE RELEVANT FINDINGS GIVEN IN THE IMPUGNED ORDERS AS WELL AS MATER REFERRED TO BEFORE US. AS DISCUSSED ABOVE, AS SESSEE HAS PURCHASED 10,000 SHARES ON 11.05.2009 @ 16.30 PER S HARE FOR TOTAL AMOUNT OF RS.1,63,000/- OUT OF WHICH RS.2 0,000/- WAS PAID IN CASH AND BALANCE AMOUNT OF RS.1,43,000/ - THROUGH CHEQUE WHICH WAS DULY REFLECTED IN THE STAT EMENT OF AFFAIRS IN THE RETURN OF INCOME FILED FOR ASSESSMEN T YEAR 2010-11. LATER ON, THE SAID SHARES WERE SUB-DIVIDED INTO 50,000 SHARES IN AUGUST, 2011. THESE SHARES WERE ST ATED TO BE PURCHASED FROM THE DIRECT ALLOTTEE, MR. HIMANSHU POKHARIYAL AND SUCH SHARES WERE TRANSFERRED DIRECTL Y FROM DEMAT ACCOUNT OF THE SAID PERSON TO THE DEMAT ACCOU NT OF THE ASSESSEE THROUGH E-TRANSFER WITH ALLIED SERVICES PV T. LTD. OUT OF 50,000 SHARES, 20,000 SHARES WERE SOLD IN PREVIO US YEAR AND BALANCE AMOUNT OF 30,000 SHARES HAVE BEEN SOLD IN THE RELEVANT ASSESSMENT YEAR. IT HAS NOT BEEN BROUGHT O N RECORD I.T.A. NO.2767/DEL/2016 8 THAT THE SALE OF SIMILAR SHARES IN THE EARLIER ASSE SSMENT YEAR HAS BEEN DOUBTED OR NOT. IT IS NOT IN DISPUTE THAT, IN SO FAR AS PURCHASE OF SHARES THROUGH CHEQUE IS CONCERNED THE SAME WERE DULY REFLECTED IN THE BANK ACCOUNT OF THE ASSE SSEE AND SHOWN IN THE EARLIER YEARS AND THE SALE CONSIDERATI ON IS ALSO SUPPORTED BY FOLLOWING EVIDENCES:- A) CONTRACT NOTE GIVING DATE, TIME SETTLEMENT DETAILS ETC B) STT IS PAID ON TRANSACTION C) TRANSACTION IS THROUGH TRUSTLINE SECURITIES D) SALE IS MADE ON ONLINE MARKET OF BOMBAY STOCK EXCHANGE E) CONSIDERATION IS RECEIVED ELECTRONICALLY IN BANK THROUGH RTGS F) SHARES ARE TRANSFERRED FROM DEMAT ACCOUNT. 9. APART FROM THAT, IT IS NOT IN DISPUTE RATHER BOT H ASSESSING OFFICER AND LD. CIT (A) IN THEIR EXHAUSTI VE ORDER HAVE INCORPORATED THE PRICE MOVEMENT OF THE SAID SC RIP RIGHT FROM 06.02.2010 TO 09.12.2016 AND ON PERUSAL OF THE SAME IT IS SEEN THAT THERE HAS BEEN INCREASE AND DECREASE I N THE SHARES PRICES LIKE A NORMAL SCRIP AND IT IS ALSO NO T IN DISPUTE THAT THE SAID SHARES WERE TRADED IN ALL THE YEARS U NDER THE STOCK EXCHANGE. BEFORE US, LEARNED COUNSEL HAS ALSO PLACED THE ASSESSMENT ORDERS FOR THE ASSESSMENT YEAR 2013- 14 AND 2014-15 IN THE CASE OF M/S. CCL INTERNATIONAL LTD. PASSED U/S.143(3) TO SHOW THAT THIS COMPANY IS GENUINE AND REGULARLY ASSESSED TO TAX BY THE DEPARTMENT. FROM T HE PERUSAL OF THE ENTIRE ASSESSMENT ORDER AND LD. CIT (A) ORDER, IT I.T.A. NO.2767/DEL/2016 9 IS SEEN THAT, NOWHERE THERE IS ANY REFERENCE TO ANY MATERIAL OR INFORMATION SO AS TO SUGGEST THAT; FIRSTLY , ASSESSEE HAS BEEN FOUND TO BE BENEFICIARY OF ANY BOGUS OR ACCOMMODATION ENTRY IN ANY OF THE INVESTIGATION/SEARCHES CARRIED OUT ANYWHERE; SECONDLY , THERE IS NO MATERIAL THAT ANY ACTION HAS BEEN TAKEN BY THE SEBI AGAINST THIS COMPANY AND SUCH AN ACTION OF BLACK-LISTING THIS COMPANY HAD ATTAINED F INALITY AND; LASTLY , IT IS ALSO MATTER OF RECORD THAT THE DEPARTMENT I N OTHER CASES UNDER SCRUTINY PROCEEDINGS HAS ACCEPTED SIMILAR TRANSACTION OF SALE OF SHARES OF M/S. CCL INTERNATIONAL LTD. 10. NOWHERE THE EVIDENCES FILED BY THE ASSESSEE H AS BEEN REBUTTED OR ANY INQUIRY WHATSOEVER HAS BEEN CONDUCT ED BY THE ASSESSING OFFICER OR BY THE LD. CIT(A) TO PROVE THAT ASSESSEE WAS INVOLVED IN ANY CLANDESTINE MANNER FOR ROUTING ITS OWN UNACCOUNTED MONEY. IF THE ASSESSEE HAS FILE D THE ENTIRE EVIDENCES RELATING TO PURCHASE WHICH IS MOST LY THROUGH CHEQUE SHOWN IN THE EARLIER YEARS AND ALSO FILED AL L THE DETAILS OF SALE TRANSACTIONS AND THE SHARES WHICH HAVE BEEN ROUTED THROUGH DEMAT ACCOUNT AND SOLD THROUGH STOCK EXCHAN GE ON A QUOTED PRICE ON THAT DATE, THEN ONUS SHIFTS UPON THE DEPARTMENT TO PROVE THAT ALL THESE EVIDENCES ARE ON LY MAKE BELIEVE DOCUMENTS AND CERTAIN MINIMAL INQUIRY IS RE QUIRED TO REBUT ALL THESE EVIDENCES. AS STATED ABOVE, NOWHERE IT HAS BEEN FOUND THAT ASSESSEE WAS IN ANY MANNER FOUND TO BE I.T.A. NO.2767/DEL/2016 10 BENEFICIARY OF ANY ACCOMMODATION ENTRY UNDER ANY IN QUIRY OR INVESTIGATION. ONCE ALL THESE TRANSACTIONS ARE DULY PROVED BY TRADING FROM STOCK EXCHANGE, THEN TO HOLD THE SALE OF SHARES AS UNEXPLAINED CREDIT OR AS UNEXPLAINED MONEY CANNO T BE UPHELD. ACCORDINGLY, WE HOLD THAT THE MONEY CREDITE D IN THE ACCOUNT OF THE ASSESSEE IS FROM THE SALE OF SHARES AND ACCORDINGLY BENEFIT OF LONG TERM CAPITAL GAIN ON SA LE OF SUCH LISTED EQUITY SHARES HAVE TO BE GIVEN. 11. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. 12. IN THE CASE OF MUKTA GUPTA SIMILAR FACTS ARE PERMEATING IN THIS YEAR ALSO FOR THE SALE OF SIMILA R SHARES. THERE IS ANOTHER ADDITIONAL FACTOR THAT IN THIS CAS E A DIRECTION WAS ISSUED BY THE LEARNED JOINT COMMISSIONER OF INC OME TAX, RANGE-2, GHAZIABAD TO ACCEPT THE SAID TRANSACTION. THE LEARNED JCIT VIDE HIS DIRECTION DATED 29.02.2016 HA S SOUGHT THE ASSESSING OFFICERS REPORT AND HAS GIVEN FOLLOW ING FINDING:- 2. THE APPLICATION OF THE ASSESSEE HAS BEEN EXAMIN ED AND THE A.O. VIDE THIS OFFICE LETTER DATED 23 12.2016 WAS REQUIR ED TO FURNISH HIS COMMENT AND THE REPORT SUBMITTED BY THE AO AS UNDER : DURING PROCEEDING OF THE CASE, IT HAS BEEN FOUND TH AT THE ASSESSEE HAS PURCHASED THE SHARES OF RS. 24,000/- BY ACCOUNT PAY EE CHEQUE NO. 077429 DATED 04.03.2013(PUNJAB NATIONAL BANK] FROM THE BROKER M/S KARVY STOCK BROKING LIMITED, C-7, LOHIA NAGAR, GHAZ IABAD. THE SHARES HAVE BEEN SOLD AFTER HOLDING THE SHARES FOR ONE YEA R THROUGH SEBI REGISTERED BROKER. THE PAYMENT OF RS. 9,84,516/- HA S BEEN RECEIVED BY RTGS AFTER PAYMENT OF STT. THE ASSESSEE HAS CLAIMED EXEMPTION U/S I.T.A. NO.2767/DEL/2016 11 10(38] FOR THE ABOVE TRANSACTION MADE ALSO REFER TH E VARIOUS JUDGMENTS PRONOUNCED BY THE COURTS'. 3. ASSESSEE HAS FILED HIS D-MAT STATEMENT FROM WHE RE IT IS OBSERVED THAT ASSESSEE IS A REGULAR INVESTOR & HOLD S SHARES IN MANY COMPANIES. THE SALE & PURCHASE IS THROUGH ACCOUNT P AYEE CHEQUE AND IMMEDIATELY ON PURCHASE OF SHARES IN MARCH, 2013, T HE SAME WERE REFLECTED IN HIS D-MAT ACCOUNT AS ON 31.03.2013 WIT H M/S KARVY STOCK BROKINGS. 4. ALL THE DETAILS AS PER AO'S QUESTIONNAIRE DATED 02.12.2015 HAS BEEN FILED BY THE ASSESSEE. ALL DOCUMENTS FILED APP EARS TO BE GENUINE. THE ASSESSEE HAS SHARES OF MANY OTHER COMPANIES AS ON 31.03.2013, THE ESTIMATED MARKET VALUE AS PER D-MAT STATEMENT I S 11.15 LACS. 5. THE ASSESSEE HAS ALSO FILED PRICE CHART OF THE SHARE COMPANY NAMELY EFFINGO TEXTILES BASED ON 30TH ANNUAL REPORT AND PRICE RANGE OF THIS COMPANY AS REPORTED IS RS. 56 TO 102 BETWEE N APRIL, 2014 TO JAN,2015. THE SEBI HAS AS A MATTER OF SURVEILLANCE STOPPED THE TRADING OF SHARES OF THIS COMPANY W.E.F. 07.01.2015 BUT NO ADVERSE ORDER HAS BEEN PASSED BY SEBI ON THIS COMPANY FOR THIS MANIPU LATION. 6. IN ANY CASE, EVEN THE AO HAS REPORTED NO ADVERSE REPORT IN THIS CASE, THEREFORE, AO IS DIRECTED TO TREAT THE GAIN EARNED BY HIM AS GENUINE AND ALLOW EXEMPTION U/S 10(38) OF THE I.T. ACT FOR WHICH THE TRANSACTIONS ARE CARRIED OUT ON WHICH STT HAS BEEN PAID AS PER LAW. 13. THE AFORESAID DIRECTION OF THE JCIT TO THE AS SESSING OFFICER CLEARLY CLINCHES THE ISSUE IN FAVOUR OF THE ASSESSEE IN BOTH THE CASES. THUS, THE ADDITION MADE BY THE ASSE SSING OFFICER BY DISALLOWING THE LONG TERM CAPITAL GAIN A ND TREATING AS UNEXPLAINED MONEY IS DELETED. I.T.A. NO.2767/DEL/2016 12 14. IN THE RESULT, THE APPEALS OF BOTH THE ASSESSEE S ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH NOVEMBER, 2018. SD/- [AMIT SHUKLA] JUDICIAL MEMBER DATED: 26 TH NOVEMBER, 2018 PKK: