Sweta Mall , Kolkta V. ITO,Ward-45(2), Kolkata

ITA 244/KOL/2023

AI Insights

This case involves an appeal by Sweta Mall against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi, which confirmed the disallowance of a claim for exemption under section 10(38) of the Income Tax Act. The exemption was sought in relation to long-term capital gains from the sale of penny stocks. The Tribunal noted that the issue was identical to a lead case, PCIT vs. Swati Bajaj, decided by the Calcutta High Court, which had ruled against the assessee, affirming the additions made under section 68 of the Income Tax Act for such gains. Consequently, the Tribunal dismissed Sweta Mall's appeal, aligning with the precedent set by the High Court.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127247 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 17-05-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 21-03-2023
• Other Referred Cases: PCIT vs. Swati Bajaj
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Capital asset converted into stock in trade; Capital Gains
• Section: 68

Judgement Text

आयकर अपील य अ धकरण, कोलकाता पीठ ‘सी’, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH: KOLKATA ी संजय गग या यक सद यएवं ी राजेश क ु मार, लेखा सद य के सम [Before Shri Sanjay Garg, Judicial Member & Shri Rajesh Kumar, Accountant Member] I.T.A. No. 244/Kol/2023 Assessment Year : 2014-15 Sweta Mall (PAN: AJJPM 8585 G) Vs. ITO, Ward-45(2), Kolkata Appellant / (अपीलाथ ) Respondent / (!"यथ ) Date of Hearing / स ु नवाई क% त'थ 18.05.2023 Date of Pronouncement/ आदेश उ*घोषणा क% त'थ 07.08.2023 For the Appellant/ नधा 0रती क% ओर से Shri Anil Kochar, Advocate For the Respondent/ राज व क% ओर से Shri Vijay Kumar, Addl. CIT, Sr. DR ORDER / आदेश Per Rajesh Kumar, AM: This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 23.02.2023 for the AY 2014-15. 2. The sole issue raised in grounds of appeal is relation to confirmation of disallowance/rejection of claim of exemption u/s 10(38) of the Act in respect of long- term capital gains arising from the sale of penny shares. 2 I.T.A. No.244/Kol/2023 Assessment Year: 2014-15 Sweta Mall 3. At the outset, we note that since the issue is relating to the penny stock and the same is squarely covered against the assessee by the recent decision of the Calcutta High Court vide common order dated 14.06.2022 in a batch of 90 appeals with a lead case titled as PCIT vs. Swati Bajaj in IA No.GA/2/2022 and Others. We also note that the facts and issue involved in the above appeal of the assessee is identical to that as was before the Hon’ble Calcutta High Court. The Hon’ble Calcutta High Court vide its decision dated 14.06.2022 (supra) has affirmed the additions made by the Assessing Officer u/s 68 of the Income Tax Act in respect of bogus long-term capital gains. In view of this, the appeal of the assessee is hereby dismissed. 4. In the result, the appeal of the assessee stands dismissed. Order is pronounced in the open court on 7 th August, 2022 Sd/- Sd/- (Sanjay Garg /संजय गग ) (Rajesh Kumar/राजेश क ु मार) Judicial Member/ या यक सद य Accountant Member/लेखा सद य Dated: 7 th August, 2023 SB, Sr. PS Copy of the order forwarded to: 1. Appellant- Sweta Mall, 6, Tansukh Lane, 3 rd Floor, Kolkata-700007. 2. Respondent – ITO, Ward-45(2), Kolkata 3. Ld. CIT(A)- NFAC, Delhi 4. Pr. CIT- , Kolkata 5. DR, Kolkata Benches, Kolkata (sent through e-mail) True Copy By Order Assistant Registrar ITAT, Kolkata Benches, Kolkata