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4. Aggrieved, the assessee preferred appeals before the CIT(A) against the stand taken by the Assessing Officer. The CIT(A) held that the assessee had completely failed to prove that they had purchased the said shares on 3.4.2003. The CIT(A) further observed that "he failed to prove that he held the shares for more than a year. The appellant also failed to prove the genuineness of the transaction claimed to have been made by him in the shares of M/s. CMC Ltd with any document. So the facts of the case clearly demonstrate that the appellant made the untrue claim of purchase and sale of shares of M/s. CMC Ltd as on 1.4.2003 and of purchase of shares of M/s. Fast Track Entertainment Ltd as on 3.4.2003 with an intention to avoid the payment of tax on the sale of the shares of M/s. Fast Track Entertainment ltd. The AO was fully justified in assessing the gain on the sale of the aforesaid shares as short term capital gain. I, therefore, confirm the assessment of gain of Rs.12,43,540 (individual) Rs. Rs.12,45,629(HUF) as short term capital gain. Consequently, the appellant cannot be entitled to deduction u/s. 54EC." Aggrieved, the assessee is in further appeal before us.

5. The learned A.R. appearing on behalf of the assessee submitted that the assessee had produced necessary evidence before the AO to support the claim, that broker had admitted that the assessee had purchased the shares of FTEL, that shares were reflected in Demat account of the assessee.

6. The assessee had claimed that they had purchased 28000 shares of FTEL on 7.4.2003 and the same were sold on 12.4.2004, 13.4.2004 and 15.4.2004. The AO held that shares were not purchased on 7.4.2003 that the sale of shares resulted in short term capital gain and not in LTCG as claimed by the assessee. The assessee had claimed that profit arising from speculative sale of shares of CMC Ltd was utilized in purchasing the shares of FTEL.