Alosha Marketing Pvt Ltd Vs ACIT (ITAT Kolkata)
In the case of Alosha Marketing Pvt Ltd vs ACIT (ITAT Kolkata), the appeal was filed by the assessee against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 29th January 2024, for the assessment year 2011-12.
The primary issues raised in the appeal were twofold: first, challenging the validity of the reassessment under section 147 of the Income Tax Act, and second, contesting the disallowance of a loss amounting to Rs. 29,90,203 incurred from the purchase and sale of equity shares.
The controversy stemmed from the initiation of reassessment proceedings by the Assessing Officer (AO) based on information from the Directorate of Income Tax (Investigation), Koi. This information alleged that the assessee had engaged in transactions involving bogus Long-Term Capital Gains (LTCG) through penny stocks like ‘JMD Telefilm’. The AO asserted that the assessee had purportedly claimed LTCG while simultaneously booking Short-Term Capital Loss (STCL) from the same stock, leading to an alleged income escapement of Rs. 4,07,9679.
The assessee contested this by arguing several legal grounds, primarily focusing on procedural lapses and lack of substantive evidence supporting the reassessment. They contended that the AO failed to adequately respond to their objections against the reopening, did not serve a valid notice under section 143(2) of the Act, and conducted the reassessment without independent verification or application of mind. Moreover, they asserted that the alleged LTCG and STCL were actually business losses claimed legitimately, not capital gains or losses.
