2026 (5) TMI 884

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....respondent submits, that during the period relevant to assessment year under appeal, the assessee had sold 4300 shares of M/s. Kappac Pharma Ltd. for a total consideration of Rs. 29,94,700/-. The Long-Term Capital Gain (LTCG) on sale of said shares was claimed as exempt by the assessee. The assessee had purchased 6000 shares of M/s. Kappac Pharma Ltd. from Om Swaroop Commodities P. Ltd. @ Rs. 13 per share on 27.11.2012 in physical form for a total consideration of Rs. 78,000/-. Subsequently, the shares were transferred to De-mat account of the assessee. Thereafter, the assessee sold aforesaid shares on various dates in the month of February 2014 for a total consideration of Rs. 29,94,700/-. The Assessing Officer (AO) without examining the t....

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...., the assessee has indulged in trading of penny stock, the AO disallowed assessee's claim of exemption on sale of penny stock. The ld. DR prayed for upholding the assessment order and reversing findings of the CIT(A). The ld. DR submits that the Hon'ble Delhi High Court in the case of Udit Kalra vs. ITO, in ITA No.220/2019 decided on 08.03.2019 dismissed appeal of the assessee, where the AO, the CIT(A) and the ITAT had consistently held that share of M/s. Kappac Pharma Ltd. is a penny stock and the LTCG on sale of said shares in bogus. 4. Both sides heard, orders of the authorities below examined. A perusal of the assessment order shows that the AO based on the information received from Investigation Wing formed an opinion that the LTCG ....