TMI Blog2022 (4) TMI 547X X X X Extracts X X X X X X X X Extracts X X X X ..... THAT:- As categorically specified in the office memorandum that monetary limit fixed for filing appeal before ITAT/HC SLPs/Appeals before SC shall not apply in case of assessee claiming Long Term Capital Gain/Short Term Capital Loss through penny stocks and appeals/SLPs in such cases shall be filed on merit. Since, in the case of the assessee it is undisputed fact that assessee has shown Short Term Capital Gain of ₹ 1,95,500/- on total sale consideration of ₹ 6,97,000/- on the sale of 50,000 shares during the year under consideration and assessee has not claimed any Short Term Capital Loss, therefore we find merit in the submission of the assessee that this case of the assessee is not covered by the office memorandum dated 16 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pany @ ₹ 10.3 per shares on 12.08.2014 and 1,50,000 shares at the rate of ₹ 10.53 per shares on 13.08.2014 and subsequently, sold 50,000 share as mentioned above. The remaining shares were remained with the assessee company as unsold during the year under consideration. The assessing officer observed that Directorate of Income Tax (Investigation) Kolkata has made investigation in respect of scheme of providing accommodation entry in shares of penny stock companies and the shares of M/s First Financial Services Ltd. were a part of the various penny stocks which were manipulated by the brokers for offering fancy returns to their clients/beneficiaries to the extent of 10 to 20 times the investment. Therefore, the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sel of the assessee submitted that the appeal of the revenue is covered by the tax effect and exception to the monetary limit issued vide Circular No. 23/2019 along with office memorandum dated 16.09.2016 are not applicable because in the case of the assessee, no long term capital gain/short term capital loss was claimed from impugned shares transactions. With the assistance of the ld. Representative we have perused the copy of the office memorandum dated 16.09.2019 placed in the paper book and same is reproduced as under: Subject: -Special Order of cases involving bogus Long Term Capital Gains (LTCG)/Short Term Capital Loss (STCL) through penny stocks from monetary limits Specified in any Circular issued under Section 268A of the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X
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