Income Tax Officer, Ward -12(1) Vs. Vasa Commercial Pvt. ltd.

Parties Involved

Facts Summary

The assessee, Vasa Commercial Pvt. ltd., filed the return of income on 24.09.2015, declaring a total income of ₹78,09,700/-. The case was reopened u/s 147 of the Act by issuing a notice u/s 148 of the Act on 31.03.2021. The Assessing Officer (AO) held that the assessee realized ₹32,03,840/- by selling equity shares of a penny stock, ‘M/s Indian Infotech & Software Ltd.’ (INDI INFO & SOF), which was deemed bogus. The AO added this amount to the assessee’s income as Long-Term Capital Gain arising from the sale of penny stock. In the appellate proceedings, the Commissioner of Income-tax (Appeals) (CIT(A)) allowed the assessee’s appeal, holding that the Long-Term Capital Gain was not claimed u/s 10(38) of the Act and the profit was offered to tax at the maximum marginal rate.…

Legal Issues

• 1. Whether the addition of ₹32,03,840/- as Long-Term Capital Gain by the AO is justified.

Judgment Outcome

Decided in favour of Assessee.

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