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No denial of exemption in absence of proof that assessee introduced unaccounted money to earn LTCG;

December 6, 2018[2018] 100 172 (Mumbai - Trib.)

IT : Assessing Officer received information from DGIT (Inv.), Kolkata that some companies were engaged in business of issuing penny stocks for which there were large number of beneficiaries claiming bogus long term capital gain - Assessing Officer, based on said information, found that assessee is one of beneficiaries of said racket and, thus long term capital gain from sale of shares of a company (Rutron) declared by assessee and claimed as exempt income under section 10(38) was treated by Assessing Officer as bogus and added said amount to total income of assessee under section 68

• The Tribunal noted that assessee had produced relevant record to show allotment of shares by company on payment of consideration by cheque, all entries are part of bank account of assessee and assessee dematerialized shares in D-mat account.

• The Tribunal held that Assessing Officer has not brought any material on record to show that assessee has paid over and above purchase consideration as claimed and evident from bank account and, thus, in absence of any evidence, it cannot be held that assessee has introduced his own unaccounted money by way of bogus long term capital gain.

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