ESTATE OF BHANWARI DEVI LATURIA,KOLKATA vs. I.T.O.,WARD-49(2), KOLKATA

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ITA 2432/KOL/2019Status: DisposedITAT Kolkata29 August 2022AY 2013-143 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal decided the appeal ex-parte, noting that the issue was covered by a Calcutta High Court decision on penny stocks. The High Court had affirmed additions made under Section 68 for bogus long-term capital gains.

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 for bogus long-term capital gains.

What were the issues?

Whether the exemption claimed under Section 10(38) for long-term capital gains from penny stocks is allowable, considering additions made under Section 68 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 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 15.07.2019 for the AY 2013-14.

2.

None appeared on behalf of the assessee 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 Estate of Bhanwari Devi Laturia

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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