Penny Stock Addition Cannot Be Sustained Without Proper Examination of Evidence: ITAT Delhi

Vishwas Marketing Services Pvt. Ltd. Vs ITO (ITAT Delhi) The Income Tax Appellate Tribunal (ITAT), Delhi Bench, decided two appeals filed by the assessee for Assessment Years 2014-15 and 2015-16 relating to disallowance of losses arising from transactions in shares of SRK Industries Ltd. and denial of exemption under Section 10(38) of the Income Tax Act. Since similar issues were involved in both years, the Tribunal heard the matters together and treated Assessment Year 2014-15 as the lead case. The assessee had filed its return for AY 2014-15 declaring a loss of Rs.21,119/-. During scrutiny a...