Directorate of Income tax Mumbai, which listed UIL as a penny stock
scrip to arrange bogus LTCG/ loss. The ld. AO therefore held that ... specified sectors in the form of duty
credit. This shall be over and above the duty credit scrip
claimed/availed under this chapter
other words,
exporters of such products were entitled to duty credit scrip equivalent to 5% of FOB value of
exports. Based on this, assessee sold
trading with the penny scrips for claiming
bogus business Loss/Gain is treated as unexplained credits u/s 68 and taxed
u/s 115BBE ... transactions relating
to sale consideration of the noted two disputed scrips as credit entries in the books
maintained by it. Dispute in this case
their respective stands
against and in support of their impugned unexplained cash credits addition(s).
3. There is no dispute about the basic identical fact ... directors of the scrip entities, entry operators and assessees like in these cases to
be engaged in artificial rigging of the scrip prices
orders of purchase, the
AO found the price movements of the scrip M/s Unno Industries Ltd. quite abnormal
compared to the rise ... deleted identical addition of LTCG
treated as unexplained cash credits regarding the very scrip as follows:-
"5. We have given our thoughtful consideration
gains/losses as bogus
unexplained cash credits u/s 68 since involving alleged artificial rigging of the
corresponding scrip prices in collusion with entry operators ... artificial rigging of scrip(s) prices in collusion
with entry operators resulting in the alleged bogus unexplained cash credits
addition(s). It is lastly submitted
their respective stands
against and in support of their impugned unexplained cash credits addition(s).
3. There is no dispute about the basic identical fact ... directors of the scrip entities, entry operators and assessees like in these cases to
be engaged in artificial rigging of the scrip prices
admission on the part of
Shri Debesh Upadhyay that the scrips sold by the assessee to earn LTCG was bogus and
pre-arranged transaction ... guise of bogus LTCG on sale of scrips which was
rightly added as unexplained cash credit. According to him, the Hon'ble Apex Courts
their respective stands
against and in support of their impugned unexplained cash credits addition(s).
3. There is no dispute about the basic identical fact ... directors of the scrip entities, entry operators and assessees like in these cases to
be engaged in artificial rigging of the scrip prices
gains/losses as bogus
unexplained cash credits u/s 68 since involving alleged artificial rigging of the
corresponding scrip prices in collusion with entry operators ... artificial rigging of scrip(s) prices in collusion
with entry operators resulting in the alleged bogus unexplained cash credits
addition(s). It is lastly submitted
