Bogus Capital Gain

Judgments in Favour of Revenue in Penny Stock Cases

Income Tax - The provision for exemption of long term capital gains from shares requiring payment of securities transaction tax has been taken advantage by unscrupulous tax evaders. An organised tax evasion involving the brokers of stock exchanges, taxpayers and their consultants, entry operators and exist operators was in action for quite some time....

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Human Probability Scores over Evidence

Income Tax - It is a very well-known fact that High court only entertains question of law and Income tax Appellate Tribunal (ITAT) is the last fact-finding authority. Thus, finding of fact as given by the ITAT would be basis for deciding the matter by High Court or Supreme Court. If, however findings given by the ITAT is […]...

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ITAT upheld section 68 Addition- Big Jump in Share Price of unknown Company

Harish Kumar HUF Vs ITO (ITAT Chennai) - Assessee has not tendered cogent evidence to explain as to how the shares in an unknown company had jumped to an higher amount in no time when the fantastic sale price was not at all possible as there was no economic or financial basis to justify the price rise. Also, assessee failed to provide deta...

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Bogus Share Capital: ITAT criticises casual approach of Department

ITO Vs M/s Citymaker Builder Pvt. Ltd. (ITAT Mumbai) - ITO Vs M/s Citymaker Builder Pvt. Ltd. (ITAT Mumbai) As two of the share applicant companies as per the information received by the A.O from the office of the DGIT(Inv), Mumbai, were the companies controlled  an infamous accommodation entry provider, therefore, it was incumbent on the part of the l...

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All transactions in penny stocks cannot be regarded as bogus for SCAM in some penny stocks

Shri Vijayrattan Balkrishan Mittal Vs DCIT (ITAT Mumbai) - Shri Vijayrattan Balkrishan Mittal Vs DCIT (ITAT Mumbai) The issue for consideration before us is whether in such cases, the legal evidence produced by the assessee has to guide our decision in the matter or the general observations based on statements, probabilities, human behavior and discovery of...

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Addition justified for Receipt of share application money if Genuineness and creditworthiness not proved

M/s. Moira Steel Ltd Vs DCIT (ITAT Indore) - A perusal of financial statement, bank statements and income tax returns of share applicants companies clearly revealed that they had no regular means to invest in the share capital of the assessee company and, therefore, AO was justified in making addition under section 68 on the ground of lack of ...

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ITAT upheld addition for accommodation entry receipts as LTCG

Suman Poddar Vs ITO (ITAT Delhi) - Suman Poddar Vs ITO (ITAT Delhi) The evidences put forth by the Revenue regarding the entry operation fairly leads to a conclusion that the assessee is one of the beneficiaries of the accommodation entry receipts in the form of long-term capital gains. The assessee has failed to prove that the share...

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Bogus Capital Gain’s Popular Posts

Recent Posts in "Bogus Capital Gain"

Judgments in Favour of Revenue in Penny Stock Cases

The provision for exemption of long term capital gains from shares requiring payment of securities transaction tax has been taken advantage by unscrupulous tax evaders. An organised tax evasion involving the brokers of stock exchanges, taxpayers and their consultants, entry operators and exist operators was in action for quite some time....

Read More
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ITAT upheld section 68 Addition- Big Jump in Share Price of unknown Company

Harish Kumar HUF Vs ITO (ITAT Chennai)

Assessee has not tendered cogent evidence to explain as to how the shares in an unknown company had jumped to an higher amount in no time when the fantastic sale price was not at all possible as there was no economic or financial basis to justify the price rise. Also, assessee failed to provide details of persons who purchased the shares....

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Bogus Share Capital: ITAT criticises casual approach of Department

ITO Vs M/s Citymaker Builder Pvt. Ltd. (ITAT Mumbai)

ITO Vs M/s Citymaker Builder Pvt. Ltd. (ITAT Mumbai) As two of the share applicant companies as per the information received by the A.O from the office of the DGIT(Inv), Mumbai, were the companies controlled  an infamous accommodation entry provider, therefore, it was incumbent on the part of the lower authorities to have carried out [&h...

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All transactions in penny stocks cannot be regarded as bogus for SCAM in some penny stocks

Shri Vijayrattan Balkrishan Mittal Vs DCIT (ITAT Mumbai)

Shri Vijayrattan Balkrishan Mittal Vs DCIT (ITAT Mumbai) The issue for consideration before us is whether in such cases, the legal evidence produced by the assessee has to guide our decision in the matter or the general observations based on statements, probabilities, human behavior and discovery of the modus operandi adopted in earning a...

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Addition justified for Receipt of share application money if Genuineness and creditworthiness not proved

M/s. Moira Steel Ltd Vs DCIT (ITAT Indore)

A perusal of financial statement, bank statements and income tax returns of share applicants companies clearly revealed that they had no regular means to invest in the share capital of the assessee company and, therefore, AO was justified in making addition under section 68 on the ground of lack of creditworthiness and genuineness....

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ITAT upheld addition for accommodation entry receipts as LTCG

Suman Poddar Vs ITO (ITAT Delhi)

Suman Poddar Vs ITO (ITAT Delhi) The evidences put forth by the Revenue regarding the entry operation fairly leads to a conclusion that the assessee is one of the beneficiaries of the accommodation entry receipts in the form of long-term capital gains. The assessee has failed to prove that the share transactions are genuine and […]...

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No addition u/s 68 for bogus LTCG without substantial evidence

L. K. Prahladka, HUF Vs ITO (ITAT Kolkata)

Since assessee had brought all the relevant material to substantiate its claim that transactions of the purchase and sale of shares were genuine and AO had brought nothing controverting material to deny the same, therefore, the long term capital gain (LTCG) on sale of shares of M/s. KAFL claimed as exempt by assessee could not be treated ...

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LTCG from penny stocks cannot be treated as bogus if documentation is in order and no fault found by AO

Chandra Prakash Jhunjhunwala Vs DCIT (ITAT Kolkata)

Chandra Prakash Jhunjhunwala Vs DCIT (ITAT Kolkata) FULL TEXT OF THE ITAT JUDGEMENT The captioned appeal filed by the Assessee, pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-21, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer ...

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ITAT held 282 time Capital Gains from Penny Stocks as Bogus

Shri Sanat Kumar Vs ACIT (ITAT Delhi)

No doubt assessee has meticulously completed the paper work by routing his entire investment through banking channel but the results thereof are altogether beyond human probabilities. Because neither in the past nor in the subsequent years, assessee has indulged into any such investment having huge windfall. Had the assessee been so intel...

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Bogus Share Capital | Addition upheld | Creditworthiness of shareholders not proved

M/s Royal Rich Developers Pvt. Ltd. Vs DCIT (ITAT Mumbai)

M/s. Royal Rich Developers Pvt. Ltd. Vs DCIT (ITAT Mumbai) We are of the considered view that the onus is on the assessee company to bring on record the cogent evidences to prove the identity and creditworthiness of the share subscribers and genuineness of the transaction which in the instant case the assessee is not […]...

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