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2022 (11) TMI 1254 - ITAT KOLKATAAddition u/s 68 - bogus LTCG - Penny stock purchases - HELD THAT:- Directorate of Income Tax (Investigation), Kolkata unearthed a racket of penny stock companies, which are managed by entry operators and brokers, wherein share prices are rigged, abnormally high so as to provide accommodation entries in the form of bogus long-term capital gain to various beneficiaries. The investigation report mentioned the list of 84 companies, which were found to be penny stock companies and all these companies have poor financial, no regular business activity was carried out and the share prices increased abnormally with the help of entry operators and brokers. Recently Hon’ble Jurisdictional High Court in the case of Swati Bajaj & Others[2022 (6) TMI 670 - CALCUTTA HIGH COURT] dealing with the similar facts and the issue relating to the penny stock companies decided against the assessee thereby confirming the addition under section 68 of the Act as well as confirming the revisionary proceedings under section 263 - Appeal of the assessee is dismissed.
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