Udita Gupta Vs ACIT (ITAT Delhi)
No Evidence, No Rigging, No Bogus LTCG – Penny-Stock Theory Fails- Human Probabilities Can’t Replace Proof
Assessee declared LTCG of Rs.1,04,06,840 from sale of shares of Yamini Investment Pvt Ltd & Goenka Business & Finance Ltd. AO treated both scrips as penny stocks, denied exemption, made addition u/s 68 & CIT(A) confirmed.
Before Tribunal, Assessee relied on the coordinate Bench decision in Rachna Gupta vs ACIT (ITA 5418/Del/2018 & 2531/Del/2022, order dated 20.12.2024), involving the same two scrips & same assessment year. Tribunal noted that Rachna Gupta is related to the assessee, and the earlier decision had already examined the identical facts and held the transactions genuine, with no evidence of accommodation entries, rigging, or involvement with operators.
Tribunal reiterated that mere high profit does not convert a scrip into penny stock; AO had only relied on suspicion, human probabilities & SEBI-style general reports without any specific material linking the assessee to any manipulative activity. Purchases were recorded, payments were through banking channels, shares were sold through stock exchange & demat, and no defect was found in documentation. Following its own earlier ruling, Tribunal held that there is no material to treat the LTCG as bogus. Entire addition u/s 68 along with the notional 5% commission enhancement was deleted.
