M/s. Rarity Agencies Limited Vs. ITO, Ward-9(1), Kolkata
Case No: I.T.A. No.: 2341/KOL/2024
Court: Income Tax Appellate Tribunal, Kolkata ‘SMC’ Bench, Kolkata
Date: 10/21/2025
Parties Involved
appellantM/s. Rarity Agencies Limited
respondentITO, Ward-9(1), Kolkata
Facts Summary
The assessee, M/s. Rarity Agencies Limited, filed an income tax return for the assessment year 2015-16 declaring a total income of ₹10,501 and claimed a refund of ₹22,960. The case was selected for scrutiny due to suspicious sale transactions in penny stocks. The Assessing Officer (AO) noted that the assessee had dealt in penny stock transactions of Unishire Urban Infra Ltd and had suffered a loss of ₹24,38,500 on account of trading in such shares. The AO concluded that the transactions were bog…
Decision in favour of
Revenue
Legal Issues
- 1. Whether the Ld. CIT(A) erred in confirming the action of AO in treating the long-term capital loss of Rs. 24,38,500/- as bogus and income u/s 68.
- 2. Whether the Ld. CIT(A) erred in confirming the action of AO in treating the long-term capital loss of Rs. 24,38,500/- as bogus despite the transaction being carried out through registered brokers and recorded in the stock exchange.
1 more legal issue analysed in this judgement.
Precedents Relied Upon
3 precedents cited in this judgement.