1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
TaxTMI Login
🚀 New: Section-Wise Filter ✕
Just a moment...
1. Search Case laws by Section / Act / Rule — now available beyond Income Tax. GST and Other Laws Available
2. New: “In Favour Of” filter added in Case Laws.
Try both these filters in Case Laws →
Press 'Enter' to add multiple search terms. Rules for Better Search
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
<h1>Bogus long-term capital gains addition in penny stock upheld deletion; revenue appeals dismissed and order applied</h1> Challenge to tax addition treating alleged bogus long term capital gains from penny stock transactions was considered; the appellate reasoning accepted ... Bogus LTCG - Addition u/s 68 - bogus penny stock script - HELD THAT:- This issue came up for consideration in bunch of appeals, main case [2024 (5) TMI 501 - MADHYA PRADESH HIGH COURT] and this Court has dismissed the appeals filed by the revenue deleting the addition. In view of the aforesaid, the present appeal is dismissed and the order shall be applicable mutatis mutandis in the facts and circumstances of the present case also. Issues: Whether the Income Tax Appellate Tribunal was justified in deleting the addition of Rs.14,09,939/- made by the Assessing Officer (and confirmed by the CIT(A)) where the Investigation Wing had found that the shares (Kappac Pharma Ltd) were of a bogus penny-stock company and the assessee had claimed exempt long-term capital gains under Section 10(38) of the Income-tax Act, 1961.Analysis: The Court considered the substantial question of law under Section 260A arising from the ITAT's deletion of the addition. The issue was heard in a group of connected appeals and the Court referred to and applied its earlier common order dated 30.04.2024 in ITA No.56 of 2021 to the present facts. The earlier decision addressed the same legal question and facts regarding treatment of transactions involving allegedly bogus/paper companies and the claim of exemption under Section 10(38). Given the identity of the legal question and factual matrix, the reasoning and conclusion in the earlier common order were held applicable mutatis mutandis to the present appeal.Conclusion: The appeal filed by the Revenue is dismissed and the ITAT's deletion of the addition is sustained; the order dated 30.04.2024 in ITA No.56 of 2021 is held applicable mutatis mutandis to this case (decision in favour of the assessee).
TaxTMI 
TaxTMI 
