2022 (11) TMI 881 - AT - Income Tax
Addition u/s 68 - Bogus share transactions - penny stock purchases - HELD THAT:- Share prices of alleged company witnessed a drastic and sharp increase in a very short span of time without having sufficient reason for such increase of price of such share and findings of authorities below on this issue.
In the case of Swati Bajaj [2022 (6) TMI 670 - CALCUTTA HIGH COURT] under similar set of facts considering report of Directorate of Income Tax (Investigation), Kolkata and also poor financials of the penny stock companies but having sharp, drastic and abnormal increase in share price, held such long term capital gain from sale of such shares as bogus and confirmed the addition made by the ld. AO u/s. 68 and also confirmed the order passed by the AO thereby treating the assessment order is a valid one. Thus assessee having failed to controvert this finding by placing any other binding precedence of Hon’ble Supreme Court in its favour therefore we fail to find any infirmity in the finding of the authorities below and the assessment order passed u/s 143(3) and order passed by the ld. CIT(A). Therefore, we dismiss the appeal filed by the assessee.
Addition u/s 69C alleging commission paid by the assessee towards payment of brokerage - Same has been added under the head of income from other sources in the hands of assessee which was also affirmed by the ld. CIT(A). while passing the impugned order regarding this issue, assessee having failed to controvert the findings of the authorities below. Therefore, we failed to find any infirmity in respect of this issue and dismiss the appeal filed by the assessee.