2025 (9) TMI 1504

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.... the Assessee filed his return of income on 29/09/2013 declaring a 'Business Loss' from trading in shares through his proprietary concern, M/s Sterling Security Systems. The return filed by the Assessee was scrutinized and assessed u/s 143(3) on 25/02/2016, wherein the Ld. A.O. examined the share trading activity and accepted the Assessee's claim as 'Business Loss'. Thereafter, a search u/s 132 of the Income Tax Act, 1961 ('Act' for short) was conducted on 26/12/2016 and assessment u/s 153A of the Act was completed on 31/12/2019, but no incriminating material relating to the relevant year was found. The said assessment order was quashed by the Tribunal vide order dated 09/03/2022 in ITA No. 724/Del/2021. Thereafter, a notice u/s 148....

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....g shares through his propriety concerns M/s Sterling Security Systems and at no point of time claimed any Short Term Capital Loss. Further submitted that, in view of Office Memorandum F. No. 279/MISC./M-93/2018-ITJ(PT.) coupled with CBDT Circular No.09 of 2024 dated 17/09/2024, the present Appeal filed by the Revenue is not maintainable. Thus, sought for dismissal of the Appeal. 6. We have heard both the parties and perused the material available on record. Admittedly, the Assessee declared Business Loss from trading in shares through his proprietary concerned M/s Sterling Security Systems and the Assessee has not claimed any Short Term Capital Loss. The tax effect of the present appeal filed by the Revenue is Rs. 49,88,400/- which is le....

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....aiming bogus LTCG/STCL through penny stocks and appeals/SLPs in such cases shall be filed on merits." 7. The Co-ordinate Bench of the Tribunal of Ahmedabad Bench decided the identical issue in the case of ITO vs Palak Chinubhai Patil [2022] 137 taxmann.com 194, wherein it is held that the Appeal of the Revenue is not maintainable in following manners:- "8. From a plain reading of the language of Circular No. 23 of 2019 dated 06.09.2019 read with Office Memorandum dated 16.09.2019, in our view, the same shall apply when assessee has earned / claimed bogus LTCG/STCL through penny stocks. However, there is nothing to suggest that the Circular read with Memorandum would apply with equal force even if the assessee has shown sale and ....