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2022 (12) TMI 384 - AT - Income TaxRevision u/s. 263 - Bogus LTCG - as per CIT, AO failed to examine the correctness and genuineness of claim of long term capital gain(LTCG) u/s. 10(38) from sale of equity shares of a penny stock companies - HELD THAT:- In the impugned order ld. PCIT referred to the information from Directorate of Income Tax (Investigation), Kolkata, which had unearthed a large economic scam of tax evasion in July 2013 conducting search and seizure operations - share brokers and entry operators were involved in manipulation of market price of such penny stock. 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 of the Act and also confirmed the order passed u/s. 263 of the Act, thereby treating the assessment order as erroneous and so far as prejudicial to the interest of the revenue. Assessee having failed to controvert this finding by placing any other binding precedence of Hon’ble Supreme Court in its favour we fail to find any infirmity in the finding of the ld. PCIT holding the assessment order u/s. 143(3) of the Act dt. 25-05-2017 as erroneous and so far as prejudicial to the interest of the revenue. Therefore, we confirm the finding of the ld.PCIT given in the impugned order. Appeal of the assessee is dismissed.
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