Penny Stock LTCG Addition Deleted – Investigation Report Alone Not Sufficient Without Direct Evidence: ITAT Mumbai

Rasila Lalitkumar Cholera Vs ITO (ITAT Mumbai) Penny Stock LTCG Addition Deleted – Mere Investigation Report Insufficient Without Direct Evidence Against Assessee – ITAT Mumbai The assessee challenged additions made in reassessment proceedings relating to alleged bogus long-term capital gain from shares of SVC Resources Ltd., which the AO treated as penny stock accommodation entries. The AO taxed the entire sale proceeds of ₹6.15 lakh u/s 68 and also added ₹12,309 as unexplained expenditure u/s 69C alleging commission payment to entry operators. Before ITAT, the assessee demonstrated t...