Case Law Details
Rajendra Kumar Gupta Vs ITO (ITAT Kolkata)
ITAT Kolkata held Long Term Capital Gain (LTCG) for sale of equity shares as bogus and accordingly not eligible to exemption u/s. 10(38) of Income Tax Act, 1961.
Facts-
The issue is involved in the appeal is relating to the disallowance of claim of exemption u/s. 10(38) of the Act in respect of Long-term capital gains (LTCG) arising from sale of shares and in some cases challenging the additions for commission expenditure for arranging such LTCG.
It was alleged that the assessee failed to file any satisfactory reply to justify the genuineness of sudden increase and decrease of the prices of equity shares. The ld. Assessing Officer finally assessed the income of the assessee at Rs.52,43,090/- vide order dated 28.12.2017 dismissing the claim of exempt income under section 10(38) of the Act and made an addition under section 68 of the Act for bogus long-term capital gain as unexplained cash credit along with an addition in respect of unexplained commission expenditure at Rs.18,980/- and disallowance under section 14A of the Act at Rs.32,243/-. Appeal against this addition before the ld. CIT(Appeals) did not get any relief to assessee. Aggrieved, the assessee is now in appeal before the Tribunal.
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