No Section 263 Action on Debatable Penny Stock LTCG After Full AO Probe: ITAT Mumbai

Suneeta Sekhri Vs DCIT (ITAT Mumbai) PCIT Cannot Invoke Section 263 on Penny Stock LTCG Where AO Conducted Detailed Enquiry & Issue Is Debatable – ITAT Mumbai The ITAT Mumbai quashed the revision order passed u/s 263 for AY 2018-19, holding that the PCIT wrongly assumed jurisdiction in a case involving alleged bogus LTCG on sale of penny stock shares. The Tribunal noted that the AO had conducted detailed enquiry during reassessment proceedings u/s 147 r.w.s. 144B, examined demat statements, bank statements, contract notes & trading details, and thereafter made an addition by denying ...