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of <h1>Appeal Dismissed Due to Bogus Capital Loss Issue; Assessee's Lack of Interest in Prosecution</h1> The appeal was dismissed as the issue of treating share trading loss as a bogus capital loss in a penny stock company was found to be covered by a ... Bogus share trading loss - capital gains/loss in penny stock companies - HELD THAT:- The company in which the assessee traded was also held to be a penny stock company. AO has noted that the above scrip of ASHIKACR in which the assessee traded appeared in the list of 84 scrip involved in dubious transaction identified by the Investigation Wing. The said report of the Investigation Wing has been duly taken note by the Hon’ble Calcutta High Court. The issue is squarely covered by the decision of the Calcutta High Court in the case of Swati Bajaj [2022 (6) TMI 670 - CALCUTTA HIGH COURT] against the assessee and in favour of the revenue. Issues:The appeal against the order of the Commissioner of Income Tax(Appeals)-3, Kolkata u/s 250 of the Income Tax Act.Issue 1: Share trading loss treated as bogus capital lossThe Assessing Officer made an addition of Rs.7,43,630/- by treating the share trading loss claimed as short-term capital loss by the assessee as bogus. The company in which the assessee traded was identified as a penny stock company involved in dubious transactions. The Hon'ble Calcutta High Court in the case of PCIT vs. Swati Bajaj & Ors has confirmed additions made by the Assessing Officer in similar cases, treating transactions in penny stock companies as bogus. Despite numerous opportunities, the assessee failed to respond to notices, indicating lack of interest in prosecuting the appeal. The issue is held to be covered by the decision of the Calcutta High Court in the case of Swati Bajaj, and as the assessee did not provide any counterarguments, the appeal was dismissed in favor of the revenue.In conclusion, the appeal was dismissed as the issue of treating share trading loss as bogus capital loss in a penny stock company was found to be covered by a decision of the Calcutta High Court, and the assessee failed to present any counterarguments despite multiple opportunities.
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