TaxTMI 
TaxTMI 
2024 (6) TMI 1590
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....015-16 and 2016-17 respectively. 2. Since common grievance is involved in the captioned appeals they were heard together and are disposed off by this common order, for the sake of convenience and brevity. 3. The common grievance in the captioned appeals is related to the deletion of entire disallowance of loss claimed by the assessee incurred in trading of various penny stocks which are non-genuine and fictious in nature as held by the Assessing Officer. The claim of loss may differ in the captioned appeals and also the scrips may also be different but the underlying facts is identical in all the three appeals. 4. Representatives of both the sides were heard at length, case records perused, relevant documentary evidences brought on....
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....H.G. Parekh) Proprietor M.NO. 119966 FRN: 126335W Sd/- Partner Sd/- Partner Place: Mumbai Date: 05/09/2014 Place: Mumbai Date: 05/09/2014 6. It can be seen from the above, the turnover from the business is at Rs..133 crores. The details of share trading are at Page No. 25 to 27 of the Paper Book. The assessee is not only engaged in trading in shares but has also shown profit from speculation which included currency trading in F&O segment. The assessee is also engaged in Future and Option trading. In a nut shell, the assessee is extensively engaged in the stock-market. During the year under consideration, the assessee has claimed business loss on sale of ten (10) shares totaling to Rs..11.77 Core....
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....cer opined that these companies did not have any past performance nor they have huge reserves to command high prices at which the shares were purchased and then sold at meager prices. 10. Once again, referring to the Investigation done by SEBI the Assessing Officer found that share of these companies were banned in the stock-market and concluded by holding that the assessee has not been able to prove the unusual rise and fall of share prices to be natural and is based on the market forces. The Assessing Officer was of the strong belief that the transactions entered by the assessee involved a series of preconceived steps, the performance of each of which is depending on the others being carried out. The true nature of such share transacti....
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....s. Munish Financial (supra), the Ld. CIT(A) deleted the disallowance of loss made by the Assessing Officer. 13. We have given a thoughtful consideration to the orders of the authorities below. The undisputed fact is that the name of the assessee is nowhere in the Investigation Report be it Investigation Wing, Kolkata, Investigation Wing, Mumbai or Investigation Wing of SEBI. It is equally true that even the broker of the assessee is not in any of the Reports. As mentioned elsewhere looking the financials of the assessee we do not find any reason to doubt the losses only in respect of ten (10) shares when the turnover of the assessee is more than hundred crores. As mentioned elsewhere, the assessee is involved in the stock-market and is w....
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....l or different fact may make a world of difference between conclusions in two cases." The Hon'ble Karnataka High Court in the case of "Flipkart India (P.) Ltd. v/s Assistant Commissioner of Income-tax", [2017] 79 taxmann.com 159 (Karnataka) has observed that considering the fact that this blind appreciation of a precedent is a frequent occurrence, in catena of cases, the Hon'ble Supreme Court has clearly opined that a judgment should not be read as a provision of law. A judgment is confined to the facts and circumstances of its own case. It is only when the facts and circumstances in two cases are similar that the ratio of the former case becomes applicable to the latter case." 14. In the light of the above, the decision rel....