Share transactions could not be considered bogus simply based on a broker’s statement: ITAT
The Mumbai bench of ITAT has held that share transactions could not be considered bogus simply based on a broker’s statement where the shares were bought through a recognized stock exchange using a registered broker and credited to the taxpayer’s D-mat account. Bonus shares were also credited to the same account. The transactions had supporting contract notes and used legitimate banking channels for payments and proceeds. The AO has also only relied on the Investigation carried out by the Investigation wing, Kolkata and Mumbai that assessee is a beneficiary of these bogus long term capital gain entries. Nowhere the AO has brought on record any other evidence than relying on the report of investigation wing that the assessee is beneficiary of this huge racket of taking bogus entries of long-term capital gain.
Case:- Smt. Veena Chaturvedi v. DCIT, ITA No. 1702/Mum/2021
The copy of the order is as under: