Fwd: Imp High Court Verdict On Bogus Long-Term Capital Gains From Penny Stocks
Sunil MALOO
From: "itatonlineorg_newsletter" <edi...@itatonline.info>
Date: 21-Dec-2017 11:07 AM
Subject: Imp High Court Verdict On Bogus Long-Term Capital Gains From Penny Stocks
To: <sunil...@suranamaloo.com>
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Sanjay Bimalchand Jain vs. Pr CIT (Bombay High Court)
Bogus LTCG from Penny stocks: The assessee has not tendered cogent evidence to explain how the shares in an unknown company worth Rs.5 had jumped to Rs.485 in no time. The fantastic sale price was not at all possible as there was no economic or financial basis to justify the price rise. the assessee had indulged in a dubious share transaction meant to account for the undisclosed income in the garb of long term capital gain. The gain has accordingly to be assessed as undisclosed credit u/s 68
The assessee had indulged in a dubious share transaction meant to account for the undisclosed income in the garb of long term capital gain. While so observing, the authorities held that the assessee had not tendered cogent evidence to explain as to how the shares in an unknown company worth Rs.5/had jumped to Rs.485/ in no time. The Income Tax Appellate Tribunal held that the fantastic sale price was not at all possible as there was no economic or financial basis as to how a share worth Rs.5/of a little known company would jump from Rs.5/to Rs.485/. The findings recorded by the authorities are pure findings of facts based on a proper appreciation of the material on record. While recording the said findings, the authorities have followed the tests laid down by the Hon’ble Supreme Court and this Court in several decisions
Full Text Of Representation Made By The AIFTP On Reforms To Direct Tax Laws & GST
It was reported earlier that the AIFTP had a meeting with the Revenue Secretary Dr. Hasmukh Adhia and the CBDT Chairman Shri Sushil Chandra. The Tax Bar had offered valuable suggestions on reforms to the tax laws. For the benefit of the taxpayers and professionals, the full text of the representations made are reproduced.
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