2023 (9) TMI 1423 - HC - Income Tax

Bogus LTCG - exemption u/s 10(38) - HELD THAT - This Court is of the view that the following substantial questions of law require consideration I) Whether the learned Tribunal has rightly accepted the claim of the assessee as per law regarding exemption under Section 10(38) with respect to alleged income under the head Long Term Capital Gain on sale of shares of penny stock by ignoring the admission by their group before the Income Tax Authority that complete tax would be paid on the bogus LTCG claimed by the group subsequent to survey operation under Section 133 A ? II) Whether the learned Tribunal has rightly dismissed the appeal of the revenue with the observation that as the sale of shares were effected through recognized stock exchange and STT had been paid at the time of transfer, therefore it cannot be held as bogus? List this matter on 9th October, 2023 for final hearing.

Summary

The Orissa High Court admitted an appeal challenging an order by the Commissioner of Income Tax related to long-term capital gains on the sale of penny stock shares. The court identified two substantial questions of law for consideration. The matter is scheduled for final hearing on October 9, 2023.