TMI Blog2022 (12) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... off was allowed. In our considered view, though the case of the assessee falls within the ambit of the ratio laid down by the Hon ble Calcutta High Court in the case of Swati Bajaj ( 2022 (6) TMI 670 - CALCUTTA HIGH COURT] that the gains on the penny stocks are taxed and no exemption is available u/s 10(38) of the Act however the long term capital gain has to be computed in totality on all the shares as a whole and should be brought to tax accordingly. In our considered view, the authorities below cannot be allowed to treat one transaction as income and reject on the other on the ground that it has incurred loss and is bogus and suspicious. Accordingly we set aside the order of Ld. CIT(A) and direct the AO to allow the set off of sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. C.I.T(A) erred in confirming the addition u/s. 68 when he should have examined the persons whose statement have been relied upon by him and should have allowed the assessee to cross examine them which was specifically asked for. 5. For that on the facts and circumstances of the case the Ld. C.I.T(A) erred in confirming the action of the AO in treating the short term capital loss of Rs. 66,16,432/- as not genuine which was unjustified and not in accordance with law. 6. For that on the facts and circumstances of the case the order of the CIT(A) be modified and the- assessee be given the relief prayed for. 7. For that the assessee craves leave to add, alter or amend any ground before or at the time of hearing. 3. Tho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me arising from the same source of income. 5. Facts in brief are that during the assessment, the assessee filed return of income on 31.07.2014 showing total taxable income of Rs. 2,63,320/- which was processed u/s 143(3) of the Act. Thereafter the case of the assessee was selected for scrutiny and statutory notices were duly issued and served on the assessee. The AO during the assessment proceedings, observed that the assessee has sold scrips of M/s Unishire Urban Infra Ltd. amounting to Rs. 72 lacs and after deducting the expenses from the sales considerations, a profit of Rs. 70,59,800/-was shown and the said amount was adjusted against the short term capital loss of Rs. 66,24,570/-. The AO held short term capital loss to be bogus and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shares as a whole and should be brought to tax accordingly. In our considered view, the authorities below cannot be allowed to treat one transaction as income and reject on the other on the ground that it has incurred loss and is bogus and suspicious. Accordingly we set aside the order of Ld. CIT(A) and direct the AO to allow the set off of short term capital loss of Rs. 66,16,432/- from long term capital gain from the sale of shares of M/s Unishire Urban Infra Ltd. and tax the net income from capital gain which is also in accordance with the provisions of Section 70(3) of the Act. Accordingly, the appeal of the assessee is allowed. 8. In the result, the appeal of the assessee is allowed. Order is pronounced in the open court on 28th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
