TaxTMI 
TaxTMI 
2025 (8) TMI 370
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in deleting the disallowance of Rs. 6,06,430/ being claimed as Long Term Capital Gain u/s 10(38) of the LT. Act on sale of penny stock scrip Rajlaxmi Industries Ltd?" 2. Whether on the facts and circumstances of the case and in law, the Ld. CITIA) has erred deleting the disallowance of Rs. 3032/- being commission u/s 69 of the Act, for arranging bogus capital pain transactions on sale of penny stock scrip M/s. Rajlaxmi Industries Ltd?" 3. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the disallowance of Rs. 6,06,430/-claimed as LTCG, without appreciating the fact that the assessee's case was re-opened, on the basis of the information received from DDIT (Investigati....
X X X X Extracts X X X X
X X X X Extracts X X X X
....inflated price and made substantial and wrongful gain?". 6. Whether on the facts and circumstances of the case and in law, Ld. CITIA) has erred in deleting the disallowance claimed, as exemption of LTCG without appreciating the nature of the transactions by accepting the documentation presented by the assessee at face value, without adequately considering the underlying fraudulent intent and the orchestrated steps taken to present these transactions as genuine. The assessment of the true character and intent behind these transactions was crucial and has been overlooked?" 7. Whether on the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not considering the fact that the direct and circumstantial ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....024) 164 taxmann.com 133 (Calcutta), which has been confirmed by the Hon'ble Supreme Court by dismissing SLP in SLP (c) of 21636/2024 Dated. 20.09.2024. 10. The tax effect involved in this case is Rs. 1,88,324/, which is below the prescribed limit mentioned in the CBDT's Circular F.No.279/Mise 142/2007- ITJ(Pt) amended vide No. 09/2024 dated. 17.09.2024 and this case also falls under one of the exceptions specified in the of the CBDT's Circular No 05/2024 Dated, 15.03.2024, wherein it is stated that in cases involving "Organized Tax Evasion" including cases of accommodation entry of penny stocks the decision to file appeal/SLP shall be taken on merit without regard to the tax effect and the monetary limit 4 11.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sideration by way of cheque in 1994. Such transaction is confirmed by successor of Rajlaxmi i.e. Gini Silk Mills. Physical share was received in 1994. The shares were dematerialised when it was made compulsory for dematerialisation of shares of listed public company in 2013 onwards. The holding period is about 20 years. The assessee were sold through Patani Securities Private Limited who is recognised broker of Bombay Stock Exchange (BSE). The shares were sold in two lots i.e. 1000 on 24.09.2014 and 1000 on 25.09.2014 on Bombay Stock Exchange. The assessee paid STT. During assessment, the assessee furnished complete details that is date of acquisition of share, details of dematerialisation of share and details of share sold. No adverse rema....
X X X X Extracts X X X X
X X X X Extracts X X X X
....rse remark and straightway recorded that assessee is involved in penny stock shares. The assessing officer recorded modus operandi of penny stock operators from page no. 2 and hold that profits on shares is beyond human probabilities. The assessing officer referred financial of impugned shares Scrips Company. The assessing officer extracted the financial of Rajlaxmi from which is based from research on "Dion Global Solution Ltd.". I further find that assessee was called for recording his statement. The statement of assessee was recorded by ITO / assessing officer in detail as has been recorded at page no. 10 to 14. The assessing officer asked about 49 questions to assessee. The assessee in response to various questions firmly remained on hi....