Documentary Trail Wins- Suspicion Cannot Replace Evidence: Penny-Stock Addition Deleted

Hareshkumar Mafatlal Shah Vs ACIT (ITAT Mumbai)

Assessee had declared LTCG of ₹2,41,53,979 from sale of shares of Sunrise Asian Ltd (SAL) & Monarch Health Services Ltd (MHSL), acquired through proper banking channels, held in Demat, & sold on BSE with STT paid. AO treated entire gain as bogus penny-stock accommodation entry based on general investigation statements of one Vipul Bhatt & denied cross-examination. AO added LTCG u/s 68 & alleged commission of ₹9,66,159 u/s 69C. NFAC upheld additions.

Before Tribunal, Assessee

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