LTCG from penny stocks cannot be treated as bogus if documentation is in order and no fault found by AO

Chandra Prakash Jhunjhunwala Vs DCIT (ITAT Kolkata)

FULL TEXT OF THE ITAT JUDGEMENT

The captioned appeal filed by the Assessee, pertaining to assessment year 2014-15, is directed against the order passed by the Commissioner of Income Tax (Appeal)-21, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the ‘Act’) dated 30/12/2016.

2. The grounds of appeal raised by the assessee are as follows:

1. That on the facts and in the circumstances of the case the action of the ld. CIT(A) to confirm the addition made by the A.O. of Rs. 12,01,950/- u/s 50C of the Act is unjustified and bad in law.

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