SWETA MALL,KOLKTA vs. ITO,WARD-45(2), KOLKATA

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ITA 244/KOL/2023Status: DisposedITAT Kolkata07 August 2023AY 2014-152 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal noted that the issue is identical to a Calcutta High Court decision which affirmed additions made under Section 68 for bogus long-term capital gains. Therefore, the assessee's appeal was dismissed.

What were the facts?

The assessee claimed exemption under Section 10(38) for long-term capital gains from the sale of penny shares. The Assessing Officer rejected this claim, and the CIT(A) confirmed the disallowance.

What were the issues?

Whether long-term capital gains from penny shares are eligible for exemption under Section 10(38) when they are considered bogus and added back under Section 68.

Which sections of the Income-tax Act were involved?

Section 10(38),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri Sanjay Garg & Shri Rajesh Kumar]

Per Rajesh Kumar, AM:

1.

This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 23.02.2023 for the AY 2014-15.

2.

The sole issue raised in grounds of appeal is relation to confirmation of disallowance/rejection of claim of exemption u/s 10(38) of the Act in respect of long- term capital gains arising from the sale of penny shares.

Assessment Year: 2014-15 Sweta Mall 3. At the outset, we note that since the issue is relating to the penny stock and the same is squarely covered against the assessee by the recent decision of the Calcutta High Court vide common order dated 14.06.2022 in a batch of 90 appeals with a lead case titled as PCIT vs. Swati Bajaj in IA No.GA/2/2022 and Others. We also note that the facts and issue involved in the above appeal of the assessee is identical to that as was before the Hon’ble Calcutta High Court. The Hon’ble Calcutta High Court vide its decision dated 14.06.2022 (supra) has affirmed the additions made by the Assessing Officer u/s 68 of the Income Tax Act in respect of bogus long-term capital gains. In view of this, the appeal of the assessee is hereby dismissed.

4.

In the result, the appeal of the assessee stands dismissed.

Order is pronounced in the open court on 7th August, 2022

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