Section 69 Addition Impermissible Without Proof of Sham Share Transactions: ITAT Mumbai

Advertisement Ushma Ashish Shah Vs ITO (ITAT Mumbai) The Mumbai ITAT partly allowed the assessee’s appeal for AY 2017-18, deleting additions made under Sections 69 and 69C of the Income Tax Act in respect of transactions in shares of a company alleged to be a penny stock. The assessee had filed the return declaring income including short-term capital gains. Subsequently, the assessment was reopened under Section 148 based on information received from the Investigation Wing alleging that the assessee had entered into penny stock transactions involving Kushal Group. During reassessment, the...