2022 (11) TMI 810

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....entre (NFAC), Delhi dated 14.02.2019, 14.02.2019 & 12.05.2022 respectively. 2. Identical issue involved in ITA Nos. 513/KOL/2019 and 514/KOL/2019 is relating to the disallowance of assessees' claim of exemption under section 10(38) of the Act in respect of long-term capital gain arising from sale of equity shares and ITA No. 384/KOL/2022 relates to the disallowance of bogus loss from sale of equity shares. 3. At the outset, ld. Counsel Shri Siddharth Agarwal for all the three assessees' has been fair enough to state that since the issue involved in these appeals relates to the penny stocks and procuring of accommodation entry in the form of bogus long-term capital gain from sale of equity shares and bogus loss from sale of equity shar....

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.... trend was recessive. The Director of the Income Tax (Investigation), Kolkata initiated the investigation after coming across various such transactions. Hon'ble Jurisdictional High Court thereafter examined the facts of the case and came to a conclusion that the Company, i.e. Surabhi Chemicals & Investment Limited is a Penny Stock Company as there is an abnormal growth in the prices of its equity shares, which are not commensurate with the financial strength of the company and thus the assessee has taken the accommodation entries in the form of Long-term capital gain and thus the exemption claimed by the assesese under section 10(38) of the Act was denied and addition under section 68 of the Act made by the ld. Assessing Officer was confirm....