TaxTMI 
TaxTMI 
2024 (7) TMI 1581
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....e appeals were heard together and are being disposed of by this common order, for the sake of convenience. 2. In both these years, the assessee is aggrieved by the decision of the Ld.CIT(A) in confirming the addition relating to long term capital gains arising on sale of alleged penny stock made by the AO u/s. 68 of the Income Tax Act, 1961 ("the Act") and also in confirming the estimated commission expenses. 3. The facts relating to the issue are stated in brief. The assessee had purchased 10,000 shares of M/s. Midland Polymers Limited through the Stock Exchange platform at a cost of Rs. 3,03,469/-. The face value of the above said shares was Rs. 10/- per share at the time of purchase. Subsequently, the face value split into Re.1/- per s....
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....estimated at Rs.1,53,867/- and Rs.1,20,121/-; respectively for the AYs. 2015-16 and 2014-15, and assessed it in both the years. 5. In the appellate proceedings, the Ld.CIT(A) confirmed both the additions made by the AO in both the years. Aggrieved, assessee filed these appeals before the Tribunal. 6. The Ld.AR submitted that the assessee has purchased the shares from the Stock Exchange platform and also sold the shares in Stock Exchange platform. Thus, the assessee has purchased the shares in the normal course of making investments. The assessee has furnished all the evidences with regard to the purchase and sale of shares. The payment for purchase of shares was made through banking channels and sale consideration on sale of shares was al....
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....e with the financial strength of the company. He submitted that the share prices of the above said company has been rigged by vested interests. Hence the long term capital gains declared by the assessee has to be considered as bogus in nature. Accordingly, he supported the order(s) passed by the Ld.CIT(A) for both the years. 8. We heard the parties and perused the record. We notice that the assessing officer has primarily placed reliance on the report given by the Investigation wing of the Income tax department, Kolkatta in order to arrive at the conclusion that the long term capital gains reported by the assessee in both the years is bogus in nature. We notice that the investigation report prepared by Investigation wing, Kolkatta is a gen....
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....T(A) came to the conclusion that respondent bought 3000 shares of RFL, on the floor of Kolkatta Stock Exchange through registered share broker. In pursuance of purchase of shares the said broker had raised invoice and purchase price was paid by cheque and respondent"s bank account has been debited. The shares were also transferred into respondent"s Demat account where it remained for more than one year. After a period of one year the shares were sold by the said broker on various dates in the Kolkatta Stock Exchange. Pursuant to sale of shares the said broker had also issued contract notes cum bill for sale and these contract notes and bills were made available during the course of appellate proceedings. On the sale of shares respondent eff....