{"id":7893,"date":"2019-10-18T02:14:31","date_gmt":"2019-10-18T02:14:31","guid":{"rendered":"http:\/\/itatonline.org\/digest\/suman-poddar-v-ito-delhihc-www-itatonline-org\/"},"modified":"2021-05-07T14:26:31","modified_gmt":"2021-05-07T08:56:31","slug":"suman-poddar-v-ito-delhihc-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/suman-poddar-v-ito-delhihc-www-itatonline-org\/","title":{"rendered":"Suman Poddar v. ITO ( 2019) 112 taxmann.com 329\/ (2020) 268 Taxman 321 \/ 423 ITR 480 \/ 191 DTR 116 \/ 315 CTR 563 (Delhi)(HC), www. Itatonline.org Editorial: SLP of the assessee is dismissed , Suman Poddar v. ITO  (SLP No. 26864\/2019 dt 22-11-2019 ( 2020) 268 Taxman 320 (SC)"},"content":{"rendered":"<p>Appellant\u00a0 booked Long term capital gain (LTCG) of Rs. 73,77,806\/- and sought exemption under S. 10 (38) of the Act .AO denied the exemption. AO \u00a0found transaction pertaining to purchase of shares by Appellant \u00a0of\u00a0 Smartchamps IT and Infra Ltd., which was merged with Cressanda Solutions Ltd., to be bogus transaction by holding that\u00a0 Cressanda Solutions Ltd. was penny stock. CIT(A) and Appellate Tribunal also confirmed the\u00a0 order of AO. On appeal it was submitted that the\u00a0 Appellant had made cheque payment for purchase of 1500 shares of\u00a0 Smartchamps IT and Infra Ltd. in assessment year 2012-13, and that investment was accepted by department. It was \u00a0further submits that Appellant had produced all relevant materials before Assessing Officer, namely, documentation relating to opening of DMAT account; purchase of shares of \u00a0Smartchamps IT and Infra Ltd., contract notes, and other relevant documents. <strong>Dismissing the appeal of the assessee the Court held that, the analysis of balance sheet &amp; P&amp;L account of the Co shows that astronomical increase in share price which led to returns of 491% for assesee was completely unjustified. The EPS &amp; other financials parameters cannot justify price at which assessee claims to have sold shares to obtain Long term capital gains. It is not explained as to why anyone would purchase said shares at such high price. Accordingly the order of Tribunal is affirmed . High Court also observed that Bombay Stock Exchange\u00a0 has identified\u00a0 Cresssanda Solutions Ltd\u00a0\u00a0 as penny stock being used\u00a0 for obtaining bogus long term capital gains and no evidence of actual sale except contract notes issued by share Broker were produced . Accordingly no question of law .<\/strong> ( ITA 841\/2019, dt. 17.09.2019) (AY. 2014 -15)<\/p>\n<p><a href=\"https:\/\/drive.google.com\/open?id=1RJ4sB2uhqYX3PY6JWqtKNj9153ZnPXiT\">[Click here to download PDF file]<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>S.69: Income from undisclosed sources- Penny stock \u2013Return of  491 % &#8211; Bogus long term capital gains-  Stock Exchange  has identified  Cresssanda Solutions Ltd   as penny stock being used  for obtaining bogus long term capital gains- No evidence of actual sale except contract notes issued by share Broker were produced &#8211; Denial of exemption is held to be justified .[S.10(38),   45 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-7893","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-23j","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7893","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=7893"}],"version-history":[{"count":8,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7893\/revisions"}],"predecessor-version":[{"id":17672,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/7893\/revisions\/17672"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=7893"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=7893"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=7893"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}