Madras HC Upheld Reassessment but Order Set Aside for Lack of Discussion on Penny Stock Addition

Saloni Prakash Kumar Vs ITO (Madras High Court) In Saloni Prakash Kumar Vs ITO, the Madras High Court examined the validity of an assessment order dated 22.03.2023 passed under Section 147 read with Section 144B of the Income Tax Act, 1961. The impugned order followed a notice issued under Section 148A(b) on 16.03.2022 and an order under Section 148A(d). The assessment added ₹39,39,768 under Section 68 in place of long-term capital gains claimed from the sale of shares of Monotype India Ltd., treating them as unexplained cash credits. Interest under Sections 234A, 234B, 234C and 234D was lev...