Gujarat HC Deleted Penny Stock Addition Due to Lack of Adverse Evidence

PCIT Vs Neelu Mahansaria (Gujarat High Court) The Gujarat High Court dismissed the Revenue’s tax appeal filed under Section 260A of the Income Tax Act, 1961, challenging an order of the Income Tax Appellate Tribunal, Surat, for Assessment Year 2015–16. The Assessing Officer had completed scrutiny assessment by making additions of ₹25.26 lakh under Section 68 as undisclosed income from sale of shares of Mishka Finance & Trading Ltd., treated as a penny stock, and ₹1.26 lakh under Section 69C as unexplained commission expenditure. The Tribunal deleted both additions, holding the shar...