SRI SHRENIK BHURA,KOLKATA vs. ITO, WARD - 36(2), KOLKATA, KOLKATA

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ITA 1549/KOL/2019Status: DisposedITAT Kolkata29 August 2022AY 2013-143 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 held that the issue of penny stock and bogus long-term capital gains is squarely covered by a recent Calcutta High Court decision. This decision affirmed additions made by the Assessing Officer 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 disallowed this claim, treating the gains as bogus.

What were the issues?

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

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 Sanjay Garg & Shri Rajesh Kumar]

Per Shri Rajesh Kumar, AM:

1.

This is the appeal preferred by the assessee is against the order of the Ld. Commissioner of Income Tax(Appeals)-10, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 31.05.2019 for the AY 2013-14.

2.

None appeared on behalf of the assesse at the time of hearing nor any application seeking adjournment was filed. Therefore we are deciding the appeal ex- parte after hearing the ld DR and after considering the merits of the case.

Assessment Year: 2013-14 Shrenik Bhura. 3. 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.

4. 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 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 identical 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.

5.

In the result, the appeal of the assessee stands dismissed.

Order is pronounced in the open court on 29th August, 2022

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