March 2023
S.10(38) –Where the assessee furnished all details to the AO with regards to long term capital gain arising from sale of shares on which securities transaction tax was paid, the the AO cannot deny exemption claimed under section 10(38) in respect of the said long term capital gain.
62 Mukesh Nanubhai Desai vs. ACIT
[2022] 96 ITR(T) 258 (Surat – Trib.)
ITA No.:781 (SRT) OF 2018
A.Y.: 2012-13
Date of order: 6th May, 2021
S.10(38) –Where the assessee furnished all details to the AO with regards to long term capital gain arising from sale of shares on which securities transaction tax was paid, the the AO cannot deny exemption claimed under section 10(38) in respect of the said long term capital gain.
FACTS-I
During the year under consideration, the assessee being an individual earned long term capital gain from sale of shares on which securities transaction tax was paid by him and claimed it as exempt under section 10(38). During the course of the assessment proceedings, the exemption was denied and the long-term capital gain was added to the total income of the assessee.
During the course of the first appellant proceedings, the AO furnished his remand report stating therein that contract notice/ledger accounts furnished by the assessee though matched with the data furnished by the stock exchange, it was however discovered that the directors of the broker companies, through whom the assessee undertook transaction of sale of shares, were banned by SEBI for market manipulation. Therefore, the AO derived a conclusion that the said companies did not have potential that the assessee could earn enormous capital gain.
On the basis of the same, the Commissioner (Ap
