M/S SAFFRON INFRADEV PVT. LTD.,KOLKATA vs. I.T.O.,WARD-9(4), KOLKATA

This appeal is preferred by the assessee against the order Ld. CIT(A) – 23, Kolkata [hereinafter referred to as ‘CIT’] dated 03.07.2019 passed u/s 250 of the Income-tax Act, 1961.

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

No one appeared on behalf of the assessee. However, the ld. DR stated that since the issue involved in this appeal 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. The ld. DR has submitted that the facts and issue involved in the above appeals of the assessee are identical to that were 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.

In the result, the appeal of the assessee stands dismissed. Order is pronounced in the open court on 15th September, 2022