Megapode Vyapaar Pvt. Ltd. vs. DCIT, Circle 1(2)
Parties Involved
Facts Summary
The assessee, Megapode Vyapaar Pvt. Ltd., a private limited company engaged in investment and finance, filed an appeal against the disallowance of trading losses incurred from the purchase and sale of equity shares in Blue Circle Services Limited (BCSL) and CCL International Limited (CCLII) for the assessment years 2013-14 and 2014-15. The Assessing Officer disallowed the trading losses, alleging that the companies were penny stock companies and the losses were bogus. The assessee argued that the transactions were genuine and carried out on recognized stock exchanges with proper documentation and through banking channels.…
Decision in favour of
Assessee
Legal Issues
- 1. Disallowance of trading loss from sale of equity shares alleged to be bogus loss.
Judgment Outcome
Decided in favour of Assessee.
Precedents Relied Upon
5 precedents cited in this judgement.
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