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TMI Blog2024 (8) TMI 421X X X X Extracts X X X X X X X X Extracts X X X X ..... TMI 670 - CALCUTTA HIGH COURT] has upheld the report of the Directorate of Investigation, Kolkata in respect of penny stock companies. The transaction in the case of the assessee was in respect of shares included in the report of the Investigation Directorate, Kolkata, wherein the share of Unno Industries Ltd. was reported as a BSE listed penny stock. No merit in the objection of the assessee and there is no mistake in our finding as given in the order [ 2024 (5) TMI 692 - ITAT AHMEDABAD] Regarding objection of the assessee to the observations as made in Para 16 of the order, the assessee has quoted only a part of the observation. It was also mentioned in the said Para that It is found from the contract memo that no brokerage was charged by M/s. Jwalaji Suppliers Pvt. Ltd., Kolkata for sale of the shares to the assessee. The broker in Calcutta was after all doing a business and not running a charity. It is, thus, apparent that finding as given by the Tribunal was not only on the basis of the portion of the order to which the assessee has raised objection. The finding as recorded by the Tribunal is not disputed as incorrect and no mistake in the findings has been pointed out. By rai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n para 16 of the order, which was as under: The question as to why a broker based in Kolkata will sale the shares to a client resident in Vadodara on credit, with whom there was no previous transaction, and why the ownership of such shares sold on credit will be transferred without receipt of payment, has not been answered or explained. The Ld. AR submitted that the assessee had got a tip from the Kolkata based broker and, therefore, the transaction of purchase was carried out through him. He further explained that many brokers were providing credit facility of 4 to 5 months for buying shares because upon sale transactions, the money will be kept with him for longer time. It was for this reason that the shares were purchased from the Kolkata based broker on credit facility of 4 and month. 3. In view of the above mistakes, the assessee has prayed that the order passed by the Tribunal on 03.05.2024 may be recalled and another opportunity be granted to the assessee to present its case before the Tribunal after re-fixing the appeal. 4. Per contra, Shri Ramesh Kumar, Sr. DR appearing for the department submitted that there was no mistake apparent from the record in the order dated 03.05 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpany. Thus, the entire investigation and the addition in this case was based on the fact that it was a case of organized tax evasion of bogus capital gain through penny stock. In view of this fact, it was rightly held in the order dated 03.05.2024 that the case was squarely covered by the CBDT Circular No. 5/2024. As per Clause (h) of Para 3.1 of the said Circular, it was stipulated that the monetary limit will not apply in the Cases involving organized tax evasion including cases of bogus capital gain/loss through penny stocks and cases of accommodation entries. 8. The assessee has relied upon the decision of ITAT, Delhi in the case of Mohit Hora (HUF)(supra) in support of the contention that the shares of Unno Industries was not a penny stock. It is found no such finding was anywhere given in the said order. The finding as recorded by the Tribunal in the said order is reproduced below: 7. I have heard both the parties and perused the relevant records available with me, especially the orders of the revenue authorities and the case law cited by the assessee's counsel on the issue in dispute. I find that the assessment in this case was completed u/s. 143(3) of the Act vide orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvestigation Directorate, Kolkata had carried out a detailed study and analysis of such penny stock companies. The Hon ble Kolkata High Court in the case of PCIT Vs. Swati Bajaj, (139 taxmann.com 352) has upheld the report of the Directorate of Investigation, Kolkata in respect of penny stock companies. The transaction in the case of the assessee was in respect of shares included in the report of the Investigation Directorate, Kolkata, wherein the share of Unno Industries Ltd. was reported as a BSE listed penny stock. In view of these facts, we do not find any merit in the objection of the assessee and there is no mistake in our finding as given in the order dated 03.05.2024. 10. Regarding objection of the assessee to the observations as made in Para 16 of the order, the assessee has quoted only a part of the observation. It was also mentioned in the said Para that It is found from the contract memo that no brokerage was charged by M/s. Jwalaji Suppliers Pvt. Ltd., Kolkata for sale of the shares to the assessee. The broker in Calcutta was after all doing a business and not running a charity. It is, thus, apparent that finding as given by the Tribunal was not only on the basis of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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