SWAPNA KHAITAN,KOLKATA vs. DCIT, CIRCLE - 63, KOLKATA

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ITA 2557/KOL/2018Status: DisposedITAT Kolkata28 September 2022AY 2013-142 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 of penny stocks and bogus long-term capital gains is covered by a recent Calcutta High Court decision. The High Court had affirmed additions made under Section 68.

What were the facts?

The assessee claimed exemption under Section 10(38) for long-term capital gains from share sales. The Assessing Officer made additions in respect of bogus long-term capital gains.

What were the issues?

Whether exemption under Section 10(38) for long-term capital gains from penny stocks is allowable when the gains are considered bogus and additions are made 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, “B” BENCH: KOLKATA

Before: Shri Rajesh Kumar& Shri Sonjoy Sarma]

Per Shri Rajesh Kumar, AM:

1.

This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)-19, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 28.09.2018 for the AY 2014-15.

2.

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

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 Assessment Year: 2013-14 Swapna Khaitan 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 similar 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 28th September, 2022

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