Addition towards bogus capital gain sustained as price rise in share artificially manipulated

PCIT Vs P L Goenka HUF (Calcutta High Court)

Calcutta High Court held that reopening of assessment u/s. 147 for claim of bogus capital gain sustained fundamentals of company are very weak and abnormal price rise in share is artificially manipulated.

Facts- Revenue has preferred the present appeal mainly contesting that ITAT was not justified in law by not considering the fact that assessee had indulged in manipulation of the share prices of penny stock M/s. Tuni Textiles Mils Ltd with an intention to record fictitious long Term Capital Gains of Rs.5,36,750/-

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