Late Smt. Shashi Mittal vs Assessing Officer, Ward-2(3)

Parties Involved

Facts Summary

The assessee had reportedly sold shares of CCL International Ltd. for Rs.1,69,67,437/-. The assessee had bought these shares for Rs.66,000/- and declared Long Term Capital Gains under section 10(38) of the Act amounting to Rs.1,69,01,437/-. The AO held the view that the company CCL was a penny stock company and that the assessee had not entered into any real transactions but had merely indulged in sham transactions. This view was concurred by the First Appellate Authority.…

Legal Issues

• 1. Disallowance of exemption claimed u/s. 10(38) for Rs. 1,69,01,437/-, being long-term capital gain earned on sale of listed equity shares in demat a/c sold through recognized stock exchange.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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