Smt. Neetu Hurkat Vs PCIT (ITAT Ahmedabad)
Penny Stock LTCG Accepted:- AO’s Enquiry Held Proper & PCIT’s Revision Based Only on Audit Objection- ITAT Ahmedabad Quashes 263
In this appeal, Assessee challenged the revisional order passed by PCIT u/s 263 wherein the assessment originally completed u/s 147/143(3), accepting the returned income, was set aside on the allegation that AO failed to examine alleged bogus LTCG of ₹25,98,752 from the scrip “Toyam Industries Ltd.” treated as a penny stock. AO had reopened the case based on Insight information, issued notices u/s 143(2) & 142(1), & after detailed enquiry into purchase, sale, stock-split, demat movements & bank entries, accepted the LTCG as genuine vide order dated 16.03.2022.
Assessee demonstrated before PCIT & Tribunal that the shares were originally purchased in 2014 for ₹2,00,000 by cheque, subsequently sub-divided in 2015 into a 1:10 ratio raising the quantity to 2,00,000 shares, out of which 98,501 shares were sold during the year & the balance 1,01,499 shares were reflected in closing stock. Detailed documentary evidence including purchase bills, contract notes, demat statements, bank entries, board resolutions for stock-split & change of name from Ojas Asset Reconstruction Co. Ltd. to Toyam Industries Ltd. were furnished & verified by AO.
