ACIT-2(1)(1), MUMBAI vs. GSB SHARE CUSTODIAN SERVICES LTD., MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL, ‘G’ BENCH
MUMBAI

BEFORE: SHRI SAKTIJIT DEY, VICE PRESIDENT
&
SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT MEMBER
Asst. Commissioner of Income Tax,
Circle-2(1)(1),
Mumbai-400020
Vs.
M/s GSB Share Custodian
Services Ltd.
78/80, Alli Chambers,
Tamarind Lane Fort
Mumbai- 400023
PAN/GIR No. AABCG0388D
(Appellant)
..
(Respondent)

Assessee by None
Revenue by Shri. Bhangepatil Pushkaraj
Ramesh Sr. DR
Date of Hearing
05/03/2024
Date of Pronouncement
05/03/2025

आदेश / O R D E R

PER NARENDRA KUMAR BILLAIYA (A.M): This appeal by the revenue is preferred against the order of NFAC Delhi dated 05.06.2024 pertaining to A.Y. 2011-12. 2. The grievance of the revenue reads as under:- “The Ld. CIT(A) erred in deleting the disallowance of loss on sale of the shares of 'penny stock scrip'. M/s G S Auto International Ltd. Rs.16.690/- from the loss under the head speculation loss of Rs.12,98,365/- ignoring the fact of rigging in the price of the penny stocks script elaborately analyzed and recorded in the report of the Investigation. GSB Share Custodian Services Ltd.

2
2. The Ld. CIT(A) erred in deleting the disallowance of loss on sale of the shares of 'penny stock scrip', M/s
G S Auto International Ltd. Rs.16,690/- from the loss under the head speculation loss of Rs.12,98,365/- in the face of large scale price rigging, issue of preferential shares, splitting of share of the shares and admission of no genuine business activity in the statements of the responsible persons recorded, forming part of the report of the Investigation which formed the basis of the reasons issue of notice u/s 148
initiating income escaping assessment proceedings.
3. The tax effect on the ground of deletion of disallowance of loss of Rs. 16,690/-in respect of scrip of GS Auto International Ltd. is Rs. 5,157/- only, which is below the prescribed monetary limit in filing appeal before Hon'ble ITAT. However, this appeal is being authorized as the monetary limit to filing appeal before Hon'ble ITAT would not apply in this case (as per clause 3.1 para h) of the CBDT Circular
No. 5/2024 dated 15.03.2024. 4. The appellant craves the leave to add, amend, alter and/or delete any of the grounds of appeal as above.”