ARAVIND MODI,CHENNAI vs. ITO NON CORPORATE WARD 11(1), CHENNAI

In the result, the appeal filed by the assessee is dismissed

Bench: Shri Duvvuru Rl Reddy & Shri S.Jayaraman

penny stock company which has been used for generating bogus LTCG and the investigations revealed that a scheme was hatched by various players to obtain / provide accommodation of entry of bogus LTCG through manipulation of stock market. Therefore, the Assessing Officer re-opened and scrutinized the assessment and found that the assessee purchased

NARENDRA DEVAKINANDAN HARLALKA,CHENNAI vs. ITO NON CORPORATE WARD 10(3), CHENNAI

In the result, appeal filed by the assessee is treated as allowed for statistical purposes

Bench: Shri V. Durga Rao, Hon’Ble & Shri Manjunatha. G, Hon’Bleआयकर अपील सं./Ita No.: 1089/Chny/2019 िनधा"रण वष" / Assessment Year: 2013-14

penny stock was manipulated to generate bogus long term capital gains/ short term capital gains to facilitate tax evasion. The case was selected for scrutiny and during the course of assessment proceedings, the :-4-: ITA. No:1089/Chny/2019 Assessing Officer noticed that the assessee has purchased

MINAL SHROFF,RS PURAM TAMILNADU vs. ITO, NON CORP WARD -2(3), COIMBATORE

In the result, appeal filed by the assessee is allowed

bogus\ncapital gain from penny stocks and the same has been claimed as exempt\nincome.\n6. Basis of forming reason to believe and details of escapement of Income: On\nbasis of the above facts as established in Paragraph-5, I have reason to\nbelieve that income chargeable to tax has escaped assessment within the\nmeaning of section 147 and such

NEETA BOTHRA,CHENNAI vs. ITO NON CORPORATE WARD 9(3), CHENNAI

In the result, appeal filed by the assessee is allowed

Bench: Shri V.Durga Rao & Shri G.Manjunathaआयकर अपील सं./I.T.A.No.2507 & 2508/Chny/2018 ("नधा"रणवष" / Assessment Years:2012-13 & 2013-14) Vs The Income Tax Officer, Mrs. Neeta Bothra, 1/1, General Patters Road, Non-Corporate Ward-9(3) Chennai- 600 002. Chennai-6. Pan: Aaipb 0445J (अपीलाथ"/Appellant) (""यथ"/Respondent)

penny stock, then it is to be held that the assessee is also a beneficiary of bogus long term capital gain, but fact remains that in all those cases considered by Hon’ble High Courts and decided in favour of revenue, the fact was that purchase

NEETA BOTHRA,CHENNAI vs. ITO NON CORPORATE WARD 9(3), CHENNAI

In the result, appeal filed by the assessee is allowed

Bench: Shri V.Durga Rao & Shri G.Manjunathaआयकर अपील सं./I.T.A.No.2507 & 2508/Chny/2018 ("नधा"रणवष" / Assessment Years:2012-13 & 2013-14) Vs The Income Tax Officer, Mrs. Neeta Bothra, 1/1, General Patters Road, Non-Corporate Ward-9(3) Chennai- 600 002. Chennai-6. Pan: Aaipb 0445J (अपीलाथ"/Appellant) (""यथ"/Respondent)

penny stock, then it is to be held that the assessee is also a beneficiary of bogus long term capital gain, but fact remains that in all those cases considered by Hon’ble High Courts and decided in favour of revenue, the fact was that purchase

SOHANRAJ UTTAMCHAND ,CHENNAI vs. DCIT NON CORPORATE CIRCLE 2 , CHENNAI

In the result the appeal of the assessee is allowed

Bench: Shri A.Mohan Alankamony & Shri Duvvuru Rl Reddyआयकरअपीलसं./I.T.A.No.1787/Chny/2017 (िनधा"रणवष" / Assessment Year: 2014-15) Vs The Dcit, Shri Sohanraj Uttamchand, Non-Corporate Circle – 2, 24/12. Raghaviah Road, Chennai T. Nagar, Chennai – 600 017. Pan: Aaapu7932P (अपीलाथ"/Appellant) (""यथ"/Respondent)

purchase was through a back date contract note in cash and, there was no trial. It was also noted that the shares belonged to a penny stock company, with no credentials, and selling rates were artificially hiked, with no real buyers. On facts, inference of sales being bogus

ASHOK BATUKLAL MAKWANA,CHENNAI vs. ITO NON CORPORATE WARD 9(1), CHENNAI

In the result, the appeal filed by the each of the above assessee is dismissed

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A.No.746 /Chny/2019 ("नधा"रण वष" / Assessment Year: 2012-13) Vs The Income Tax Officer, Shri Ashok Batuklal Makwana, Flat No.E062, Door No.49, Non-Corporate Ward 9(1), Dlf Commanders Court, Chennai. Ethiraj Salai, Egmore, Chennai – 600 008. Pan: Admpm1490R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./I.T.A.No.747/Chny/2019 ("नधा"रण वष" / Assessment Year: 2015-16) Vs The Income Tax Officer, M/S. Ashok Makwana (Huf) Flat No.E062, Door No.49, Non-Corporate Ward 9(1), Dlf Commanders Court, Chennai. Ethiraj Salai, Egmore, Chennai – 600 008. Pan: Aaiha5661B (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : None ""यथ" क" ओर से/Respondent By : Shri Guru Bashyam, Jcit

penny stock company and a scheme was hatched by various players to obtain / provide accommodation of entry of bogus LTCG through manipulation of stock market for generating bogus LTCG . Therefore, the Assessing Officer re-opened and scrutinized assessment / scrutinized the assessment , as the case may be , and found that the respective assessees purchased

ASHOK MAKWANA (HUF),CHENNAI vs. ITO NON CORPORATE WARD 9(1), CHENNAI

In the result, the appeal filed by the each of the above assessee is dismissed

Bench: Shri Duvvuru Rl Reddy & Shri S. Jayaramanआयकर अपील सं./I.T.A.No.746 /Chny/2019 ("नधा"रण वष" / Assessment Year: 2012-13) Vs The Income Tax Officer, Shri Ashok Batuklal Makwana, Flat No.E062, Door No.49, Non-Corporate Ward 9(1), Dlf Commanders Court, Chennai. Ethiraj Salai, Egmore, Chennai – 600 008. Pan: Admpm1490R (अपीलाथ"/Appellant) (""यथ"/Respondent) & आयकर अपील सं./I.T.A.No.747/Chny/2019 ("नधा"रण वष" / Assessment Year: 2015-16) Vs The Income Tax Officer, M/S. Ashok Makwana (Huf) Flat No.E062, Door No.49, Non-Corporate Ward 9(1), Dlf Commanders Court, Chennai. Ethiraj Salai, Egmore, Chennai – 600 008. Pan: Aaiha5661B (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : None ""यथ" क" ओर से/Respondent By : Shri Guru Bashyam, Jcit

penny stock company and a scheme was hatched by various players to obtain / provide accommodation of entry of bogus LTCG through manipulation of stock market for generating bogus LTCG . Therefore, the Assessing Officer re-opened and scrutinized assessment / scrutinized the assessment , as the case may be , and found that the respective assessees purchased

VIDYA REDDY ,CHENNAI vs. ITO INL. TAXATION WARD 1(2) , CHENNAI

In the result, the assessee’s appeal is dismissed

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं./Ita No.2016/Chny/2017 "नधा"रण वष" /Assessment Year: 2014-15

bogus Short Term Capital Loss/bogus business loss through trading of shares of penny stocks. 7. Accommodation entry is a financial transaction between the two parties where one party enters the financial transaction. in its books to accommodate the other party. These transactions are accommodated entries mostly in lieu of cash of equal amount and commission charged over and above

SAMSON FOUNDATIONS,CHENNAI vs. ACIT NON CORPORATE CIRCLE 5(1), CHENNAI

In the result, the appeal of the assessee is allowed

Bench: Shri George Mathan & Shri Inturi Rama Rao

bogus accommodation entries in long term capital gains/ loss as per the requirement of the assessee. 4. Being aggrieved, an appeal was preferred before the ld.CIT(A), contending that shares of the companies were not penny stocks for the following reasons. :- 5 -: (i) The appellant is a trader in shares and securities in stock markets. (ii) The appellant had purchased

SMT. SUDHA EASHWAR,,CHENNAI vs. ITO, NCW - 14 (3),, CHENNAI

In the result, the appeal filed by the assessee in ITA

Bench: Shri George Mathan & Shri Ramit Kocharआयकर अपील सं./Ita No.2342/Chny/2019 "नधा"रण वष" /Assessment Year: 2014-15 V. Smt. Sudha Eashwar, The Income Tax Officer No.23A, P.T.Rajan Salai, Non-Corporate Ward-14(3) K.K.Nagar, Chennai Chennai-600 078. [Pan: Alxps 0601 D] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/ Appellant By : None ""यथ" क" ओर से /Respondent By : Ms.Sumathi Venkatraman, Jcit सुनवाई क" तार"ख/Date Of Hearing : 09.10.2019 घोषणा क" तार"ख /Date Of Pronouncement : 02.01.2020 आदेश / O R D E R Per Ramit Kochar:

bogus and sham transactions to convert her unaccounted money into legitimate money through circuitous route of sale and purchase of listed shares of M/s Turbotech Engineering Limited which is a penny stock

SMT. KANTA BAI C. JAIN,,CHENNAI vs. ITO, NCW - 5 (1),, CHENNAI

The appeal stand allowed to that extent

Bench: Shri Manoj Kumar Aggarwal, Am

penny stock at the platform of Calcutta Stock Exchange for providing bogus Long Term Capital Gains to the clients. The assessee figured as one of the beneficiaries of such gains. Accordingly notice u/s 148 was issued on 07.03.2017 and reasons for reopening were communicated to the assessee. 4.2 The assessee purchase

M.KIRAN KUMAR,CHENNAI vs. ACIT CENTRAL CIRCLE-1(4), CHENNAI

In the result, appeal filed by the assessee is partly allowed

Bench: Shri V. Durga Rao & Shri G. Manjunatha

purchase of shares on behalf of the clients. Therefore, the subject matter of the enquiry has no connection with the transaction of bogus long term capital gain. The decisions replied upon the Id. DR in case of Sanjay Bimalchand Jain (supra) is not applicable in the facts of the present case as the said decision is in respect penny stock

MOHANLAL CHIMNAJI JAIN,CHENNAI vs. ITO NON CORPORATE WARD 5(3), CHENNAI

In the result, appeal of the assessee is allowed for statistical purpose

Bench: Shri Abraham P. George]

purchased through off market deals and not through a recognized stock exchange. Further, as per the ld. ITA No. 2780 /CHNY/2017 :- 4 -: Authorised Representative, ld. Assessing Officer had relied on reports of the Investigation Wing, of Income Tax Department, Kolkatta to hold that shares of M/s.Ashika Credit Capital Ltd was a penny stock and used for generating bogus

GOLDEN ENTERPRISES,CHENNAI vs. ITO NON CORPORATE WARD-4(4), CHENNAI

In the result, the appeals filed by the assessee are allowed for statistical purpose

Bench: Shri V. Durga Rao & Shri G. Manjunathaआयकर अपील सं./Ita Nos.: 224 & 225/Chny/2020 िनधा"रण वष" / Assessment Years: 2011-12 & 2012-13

purchase and sale of shares of certain companies, on the ground that the assessee is one of the beneficiary of bogus long term capital gain / loss derived from transactions of penny stock

PRABHA SRISRIMAL,CHENNAI vs. ACIT NON CORPORATE WARD 10(1), CHENNAI

In the result, the appeal filed by the assessee is allowed for statistical

Bench: Shri Mahavir Singh, Hon’Ble & Shri G. Manjunatha, Hon’Ble

purchased and mode of payment, etc. The AO after considering relevant submissions of the assessee and also taken note of information received from the Directorate of Investigation Income Tax, Kolkata, opined that M/s.Kailash Auto Finance Ltd., is a penny stock, which has been used by many people for claiming bogus

RAMACHANDRAN,CHENNAI vs. ACIT, NON COPORATE CIRCLE-2, CHENNAI

In the result, the appeal filed by the assessee is dismissed

Bench: Shri Manu Kumar Giri & Shri Amitabh Shuklaआयकर अपील सं./Ita No.775 /Chny/2023 निर्ाारण वर्ा /Assessment Year: 2015-16 Ramachandran The Asst. Commissioner Of Old No.9, New No.19, Vs. Income Tax, Jumaulingam Street, Non-Corporate Circle-2 Mylapore, Chennai Chennai-600004 [Pan: Aaqhr6150N] (अपीलार्थी/Appellant) (प्रत्यर्थी/Respondent) अपीलार्थी की ओर से/ Appellant By : Shri Y.Sridhar, F.C.A. प्रत्यर्थी की ओर से /Respondent By : Ms.Gouthami Manivasagam, Jcit सुिवाई की तारीख/Date Of Hearing : 31.07.2024 घोर्णा की तारीख /Date Of Pronouncement : 23.10.2024 आदेश / O R D E R Per Amitabh Shukla, A.M : This Appeal Is Filed Against The Order Bearing Din & Order No.Itba/Nfac/S/250/2023-24/1053343791(1) Dated 31.05.2023 Of The Learned Commissioner Of Income Tax [Herein After “Cit(A), National Faceless Appeal Center[Nfac], Delhi, For The Assessment Years 2015- 16. Through The Aforesaid Appeal The Assesse Has Challenged Order U/S 250 Dated 31.05.2023 Passed By Nfac, Delhi. :- 2 -:

penny stock companies reportedly used for proving bogus entries) were purchased only during FY 2014-15 and the assesse had sold

MITHU KUMARI RANKA,CHENNAI vs. ITO NON CORPORATE WARD 5(30, CHENNAI

In the result, five appeals vide ITA Nos

Bench: Shri Mahavir Singh, Hon’Ble & Shri Girish Agrawal, Hon’Ble“C” Bench

bogus transaction by relying on the report of Directorate of Income-tax (Investigation), Kolkata wherein the Investigation Wing of the Department has studied the modus operandi of rigging the prices of penny stocks and generation of capital gain there from. Before the Ld. AO, the assessee furnished the evidences for sale of 7500 shares of said company, M/s. Bakra Pratisthan

RAKHEE JAIN,CHENNAI vs. ACIT NON CORPORATE CIRCLCE 17(1), CHENNAI

In the result, the assessee’s appeal is treated as partly allowed for statistical purposes

Bench: Shri George Mathan & Shri S. Jayaramanआयकर अपील सं/.I.T.A. No. 1375/Chny/2019 "नधा"रण वष"/Assessment Year : 2014-15 Smt. Rakhee Jain, The Assistant Commissioner Of No.35, Perumal Mudali Street, Vs. Income Tax, Sowcarpet, Non-Corporate Circle -17(1), Chennai – 600 070. Chennai.

purchased and sold penny stock of M/s Turbo Tech Engineering Ltd. and claimed exemption u/s. 10(38). An investigation carried out by the Investigation Wing, Kolkatta had revealed that large scale manipulation had been/being done in market price of shares of certain companies listed in the Bombay Stock Exchange by a group of persons acting as a syndicate in order