Section 68 of Income Tax Act, 1961— unexplained cash credit— In the instant case, assessee has challenged the disallowance of exemption claimed on account of long term capital gains from sale of shares of companies, M/s Turbo Tech Engineering Ltd. of Rs. 20,55,146/-; and M/s Esteem Bio Organic Food Processing Ltd. (Rs.23,00,616/- (public limited companies listed on recognized stock exchange).

the only effective issue involved in this appeal is as to whether the ld. CIT (A) was justified in confirming the addition made as alleged unexplained cash credit u/s 68 read with section 115BBE of the I.T. Act, 1961 by treating Long Term Capital Gain (LTCG) derived from sale of shares of companies mentioned above

Held that—  Considering the totality of the facts and circumstances of the case, we hold that assessee has entered into genuine transaction of sale and purchase of shares and therefore, satisfied the conditions of Section 10(38) of the I.T. Act. The assessee is entitled for exemption under the same provision. We accordingly, set aside the orders of the authorities below and delete the addition of Rs. 41,85,762/-. Appeal of assessee is allowed.[SWATI LUTHRA, SHRUTI LUTHRA, NAMRATA SEHGAL LUTHRA, MS. ASHA LUTHRA VERSUS ITO, WARD-51 (5) , NEW DELHI][2019] 14 ITCD Online (14) [ ITAT DELHI]