Narayan Tatu Rane, HUF v. Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, Narayan Tatu Rane, HUF, filed his original return of income for the Assessment Years (AYs.) 2011-12 and 2012-13, declaring total incomes of Rs.1.45 crores and Rs.8,73,46,360/- respectively. The Assessing Officer (AO) received information from the Investigation Wing that certain capital gains reported by the assessee were generated through the rigging of prices of shares of penny stock companies. The AO added sale value of shares and estimated commission expenses to the assessee's income, which the Commissioner of Income Tax (Appeals) (CIT(A)) later deleted. The Revenue has appealed against the CIT(A)'s decision.…

Legal Issues

• 1. Whether the capital gains declared by the assessee from the sale of shares of penny stock companies are bogus in nature?
• 2. Whether the assessee incurred commission expenses?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Kavita Manish Kheni vs. Income Tax Officer

  Mumbai bench

• Megapode Vyapaar Pvt. Ltd. vs. DCIT, Circle 1(2)

  Kolkata bench

• Sarita Goenka vs. Income Tax Officer

  SMC Bench, Kolkata benchAY 2014-15Allowed

• Mr. Jay Hansraj Chheda Vs. Income Tax Officer

• Zany Share Trading Pvt. Ltd. vs. Income Tax Officer, Ward-8(3)(4)

  Mumbai benchAY 2010-11Partly Allowed

• Income Tax Officer, Mumbai Vs. Sunita Chaudhary

  Mumbai benchAY 2014-15Dismissed