Case Law Details
PCIT Vs Aditya Saraf HUF (Calcutta High Court)
This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act) is directed against the order dated 30th April, 2021 passed by the Income Tax Appellate Tribunal, SMC Bench in ITA/2260/Kol/2018 dated 15.8.2019 for the assessment year 2014-15. The revenue has raised the following substantial questions of law for consideration:-
i) Whether in the facts and circumstances of the case and in law, the ITAT had erred and failed to appreciate that the assessee could not substantiate the genuineness of the transaction to prove that it had not indulged in dubious share transactions meant to account for undisclosed income in the garb of Long Term Capital Gain (LTCG) to claim exemption u/s. 10(38) of the Income Tax Act, 1961 ?
ii) Whether in the facts and circumstances of the case and in law the ITAT had erred while allowing the assessee’s appeal of claim of exemption u/s 10(38) of the Income Tax Act, 1961 without holding that transaction of sale and purchase of shares of penny stock companies was an adventure in nature of trade, thus, same was to be taxed as business income?
iii) Whether in the facts and circumstances of the case, the order of the ITAT is perverse in overlooking that it is the duty of the Tribunal to scratch surface and probe documentary evidence in depth in light of-conduct of assessee and other surrounding circumstances in order to see whether the assessee is liable to provisions of section 68 or not ?
Please become a Premium member. If you are already a Premium member, login here to access the full content.
