The assessee declared bogus long-term capital gains on the sale of penny stocks where after purchase by the assessee of the penny stock the price of the penny stock was jacked/inflated by entry operators and finally purchased from the assessee by Exit providers everyone being handed in glove with the other. The Tribunal relied on the case of the Supreme Court in McDowell and concluded that bogus long-term capital gains is nothing but tax evasion where long-term capital gains otherwise taxable is claimed as exempt by adoption of illegal means. (AY. 2014-2015)
Dineshkumar R. Tulsyan (HUF) v. ITO (2022) 220 TTJ 1094 (Pune)(Trib) Sumanadevi D. Tulsyan (Smt) v. ITO (2022) 220 TTJ 1094 (Pune)(Trib) Editorial : Appeals pending for admission before Bombay High Court. Dineshkumar R. Tulsyan (HUF) v. ITO (Lodging No. ITAXAl/ 13980 /2023 dt. 23-5-2023), Sumanadevi D. Tulsyan (Smt) v. ITO (Lodging No. ITAXAl/ 13974/2023 dt. 23-5-2023)
S. 68 : Cash credits-Capital gains-long term capital gains-Bogus long-term capital gains leads to tax evasion and is prohibited-Ex parte order Addition confirmed as cash credits. [S. 10(38), 45]