Mahaveer Kanwarlal Ranka Vs ACIT (ITAT Mumbai)
ITAT Mumbai held that addition under section 68 of the Income Tax Act made towards penny stock deleted since assessee duly discharged the onus cast upon him and there is no adverse order/penalty order against the Assessee.
Facts- The Assessee on 05.01.2009 had purchased the shares of scrip M/s. JMD Tele Films Industry Ltd. @ Rs. 18% each and on a total consideration of 2,74,973/- through RTGS and online platform i.e. Bombay Stock Exchange (BSE). Subsequently the shares were splitted into 1,50,000 shares. The Assessee subsequently sold the aforesaid shares @ Rs.123/- each and on a total consideration of Rs.1,84,38,566/- from 08.01.2010 to 14.01.2010 on the same platform i.e. BSE and consequently earned LTCG to the tune of Rs. 1,81,63,593/- received through RTGS/online mechanism of BSE.
The Assessee by filing and claimed Long-Term Capital Gain (LTCG) of Rs.1,81,63,593/- on account of sale of shares of M/s. JMD Tele Films Industry Ltd. u/s 10(38) of the Act. Subsequently, the AO on the basis of the investigation carried out by the Kolkata Investigation Directorate into 84 penny stocks including M/s. JMD Tele Films Industry Ltd. being one of it, reopened the case of the Assessee.
