PRABHUDAYAL MAHESWARI HUF,JALPAIGURI vs. I.T.O.,WARD-1(2), JALPAIGURI

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ITA 1064/KOL/2019Status: DisposedITAT Kolkata06 September 2022AY 2014-153 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the issue of penny stock transactions and bogus long-term capital gains is covered by the Calcutta High Court's decision. The High Court affirmed additions made under Section 68 for such gains.

What were the facts?

The appeals concerned the disallowance of exemption under Section 10(38) for long-term capital gains on the sale of equity shares. The Assessing Officer had treated these gains as bogus.

What were the issues?

Whether long-term capital gains arising from penny stock transactions are eligible for exemption under Section 10(38) and if additions under Section 68 are justified for bogus gains.

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, “SMC” BENCH: KOLKATA

Before: Shri Rajesh Kumar& Shri Sonjoy Sarma]

Heard together (5 matters)

I.T.A. No. 1060/Kol/2019
I.T.A. No. 1061/Kol/2019
I.T.A. No. 1062/Kol/2019
I.T.A. No. 1063/Kol/2019
I.T.A. No. 1064/Kol/2019

Read from the judgment's own cause title. This page is filed under one of them.

Per Shri Rajesh Kumar, AM: These are the appeals preferred by the different assessees against the separate orders of the Ld. Commissioner of Income Tax(Appeals)-Jalpaiguri (hereinafter referred to as the Ld. CIT(A)”] dated 12.03.2019 & 26.02.2019 for the AY 2014-15.

2.

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

1.

3. At the outset, we note that the issues are relating to the penny stock and the same are 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. We also note that 3 to 1064/Kol/2019 Assessment Year: 2014-15 Kusum Maheswari & Ors. the facts and issues involved in the above appeals of the assessees are 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 appeals of the assessee are hereby dismissed.

4.

In the result, all the appeals of the assessees stand dismissed.

Order is pronounced in the open court on 6th September, 2022

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