The Appellate Tribunal addressed the issue of alleged bogus ...

Claim of bogus capital gain on penny stock shares denied. Dept. relied on investigation report, but no evidence of collusion found. Assessee granted benefit u/s 10(38) by Appellate Tribunal.

Case Laws Income Tax

June 22, 2024

The Appellate Tribunal addressed the issue of alleged bogus long-term capital gain u/s 10(38) concerning a transaction involving shares of a company flagged as a penny stock by the Investigation Wing. The Tribunal noted that the denial of benefit solely relied on the investigation report without evidence of collusion between the broker and the taxpayer. The absence of cross-examination opportunity for the taxpayer on crucial statements was also highlighted. Referring to a High Court ruling, the Tribunal emphasized the importance of proving the genuineness of share transactions through documented evidence. Consequently, the Tribunal upheld the lower authority's decision to grant the taxpayer the benefit of section 10(38) and dismissed the Revenue's appeal for lacking merit.

View Source

← Previous Next →

The Appellate Tribunal addressed the issue of alleged bogus ...

Claim of bogus capital gain on penny stock shares denied. Dept. relied on investigation report, but no evidence of collusion found. Assessee granted benefit u/s 10(38) by Appellate Tribunal.

Case Laws Income Tax

June 22, 2024

You may also like:

Revision u/s 263 by CIT - bogus capital gains from the penny stock script - AO should have made enquiry into the genuineness of the claim of exemption of capital gains...

Bogus LTCG - Disallowing exemption u/s 10(38) - penny stock - The said company held as a penny stock company by the authorities below without any corroborative evidence...

Exemption u/s. 54EA - transfer of shares held as stock-in-trade - transfer of unlisted shares of DSPML is to be taxed under the head “capital gains” irrespective...

The assessee, a professional stock broker, claimed loss on trading of shares which was disallowed by the Assessing Officer (AO) on the grounds that the trades were not...

Correct head of income - Gain on sale of shares - nature of purchase of shares either as “investment” or “stock-in-trade” - AO has not given any clear cut finding that...

The assessee had demonstrated the genuineness of the share transaction resulting in long-term capital gains, which were claimed as exempt u/s 10(38). The Revenue...

Revision u/s 263 by CIT - Bogus LTCG - Penny stock purchases - He merely makes general reference to the investigation report of the Department stating to have contained...

The Tribunal held that the objection of the assessee regarding low tax effect was not sustainable. The addition made u/s 68 for bogus LTCG and unexplained cash credits...

Large number of penny stock companies, whose share prices were artificially raised on the Stock Exchanges in order to book bogus claims of Long Term Capital Gains or...

Unexplained credits u/s. 68 - Bogus LTCG - Penny stock purchases - Nothing on record to suggest that the shares were never with the assessee. On the contrary, the shares...

Addition u/s 68 - claim of exemption u/s 10(38) denied - Merely because a particular scrip is identified as a penny stock by the income tax department, it does not mean...

Bogus LTCG - Addition u/s 68 - bogus penny stock transaction - suspicion v/s facts - disallowing the exemption u/s 10(38) - The assessee has demonstrated with...

Bogus LTCG - penny stock - addition u/s 68 - The AO failed to bring on board any material to suggest that the assessee had made cash payment to the purchaser of share...

The assessee dealt with a penny stock, and the Assessing Officer (AO) failed to conduct proper inquiry during reassessment proceedings. The Principal Commissioner of...

Treaty benefits - ‘gains from alienation of shares' - taxability or otherwise of capital gain from sale of equity shares under Article 13(4) of India-Mauritius DTAA -...

Quick Updates: