Shyam Sunder Bajaj Vs ITO (ITAT Kolkata)
Summary: The Kolkata ITAT dismissed seven appeals involving disallowance of exemption claimed under section 10(38) of the Income-tax Act, 1961 on long-term capital gains from shares, along with additions relating to alleged commission and, in one case, trading losses. The appeals concerned AYs 2014-15 and 2015-16 and various scrips, including Surabhi Chemicals & Investments Limited, Unno Industries Limited, Kailash Auto Finance Limited, Dhanleela Investment & Trading Company Limited, Luminaire Technologies Limited and Cressanda Solutions Limited.
The Assessing Officers treated the transactions as bogus or fabricated penny-stock arrangements, relying on Investigation Wing reports, and the CIT(A)s upheld the assessments. The Tribunal considered the Calcutta High Court’s judgment in Swati Bajaj [2022] 139 taxmann.com 352 (Cal), which applied the test of preponderance of probabilities and considered surrounding circumstances, steep price rises and the assessee’s burden to establish genuineness. The assessees’ counsels accepted that the issue was squarely covered. Respectfully following the binding jurisdictional High Court decision, the Tribunal restored the respective AO orders as affirmed by the CIT(A) and dismissed all seven appeals.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
All these captioned seven appeals filed by different assessees are against the separate orders of ld. CIT(Appeals) passed against respective separate assessment orders by the Assessing Officer under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).
