TRIDENT COMMERCIAL PVT. LTD.,KOLKATA vs. I.T.O.,WARD-8(2), KOLKATA

This appeal was listed on board on 03.12.2019 and thereafter, it has been fixed for almost more than 25 times. Earlier, there was no response from the assessee/appellant to the notices of hearing issued by the Tribunal on various dates. However, on certain dates Shri Somnath Ghosh appeared on behalf of the assessee and requested for adjournments which were accordingly granted. However, from the last Assessment year: 2014-15 Trident Commercial Pvt. Ltd. four dates, no one put in appearance on behalf of the assessee despite notices sent through registered post as well as electronically at the email address provided by the assessee. Today, the Bench Clerk was asked to contact Shri Somnath Ghosh and appraise about the hearing of this appeal to which Shri Ghosh pleaded no instructions. Since, despite several notices sent to the assessee through registered post as well as served electronically on email, no one has put in appearance, therefore, it can be well assumed that the assessee is no more interested in prosecuting the present appeal. Therefore, we proceed to decide the appeal on merits after hearing the ld. DR.

With the assistance of the ld. DR, we have gone through the record and note that the issue involved in this appeal is relating to the addition made by the Assessing Officer of Rs.7,43,630/- by treating the share trading loss, claimed as short-term capital loss by the assessee, as bogus. The Assessing Officer noted that the assessee company had sold the shares of ASHIKACR company and booked the aforesaid loss and the said company was found to be penny stock company created for the purpose of booking bogus capital gains/capital loss by the Investigation Wing. The issue of booking of bogus capital gains/loss in penny stock companies has come into consideration before the Hon’ble Jurisdictional High Court in the case of PCIT vs. Swati Bajaj & Ors reported in [2022] 139 taxmann.com 352 (Calcutta), wherein, the Hon’ble Calcutta High Court has set aside the order of the Tribunal and confirmed the additions made by the Assessing Officer in cases of capital gains/loss booked in the penny stock companies treating the said transaction as bogus. The said decision has been further followed in the various decisions of the Tribunal. In the case in hand before us, the company in