INCOME TAX OFFICER, WARD - 12(1), KOLKATA vs. VASA COMMERCIAL PVT LTD., KOLKATA

The only issue raised by the Revenue in the various grounds of appeal is against the order of ld. CIT (A) allowing the appeal of the assessee

The facts in brief are that the assessee filed the return of income on 24.09.2015, declaring total income of ₹78,09,700/-. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act on 31.03.2021, after recording the reasons to believe u/s 148(2) of the Act. The ld. AO accordingly issued statutory notices along with questionnaire which was duly replied/complied by the assessee. Finally, the ld. AO held that the assessee has realized ₹32,03,840/- by selling equity shares which is a penny stock namely ‘M/s Indian Infotech & Software Ltd. (INDI NFO & SOF), which is bogus as per letter dated 18.07.2017, received from ADIT (Inv.) Unit-2(3), Kolkata. The AO, finally, added the same to the income of the assessee as Long-Term Capital Gain arising from penny stock in the assessment framed u/s 147 read with section 144B of the Act dated 28.03.2022.

In the appellate proceedings, the ld. CIT (A) allowed the appeal of the assessee by holding that the assessee has not claimed said Long Term Capital Gain u/s 10(38) of the Act and showed the same as sale of shares in the Profit and Loss account and the profit earned by the assessee was offered to tax at the maximum marginal rate of tax.

After hearing the rival contentions and perusing the materials available on record, we find that the script involved in the present case i.e. M/s Indian Infotech& Software Ltd. is not a penny stock and as not included in the list of 84 Penny stocks. The list thereto is extracted by the ld. AO at page no.7 to 10 of the assessment order. The assessee has also filed before us the copies of contract notes of

Since, the assessee did not press the cross objection filed by the assessee and therefore, same is dismissed as not pressed.

In the result, both the cross objection of the assessee as well as appeal of the Revenue are dismissed.