Disallowance of short term capital loss merely based on information from investigation wing is unsustainable

Naveen Kishor Mohnot Vs ITO (ITAT Mumbai) ITAT Mumbai held that disallowance of short term capital loss incurred on sale of shares by mechanically applying the information received from investigation wing is unsustainable in law. Facts- Based on the information received from the Investigation Wing that the assessee has dealt in sale and purchase of shares of M/s. VAS INFRASTRUCTURE LIMITED, which is a penny stock company. Accordingly, the case of the assessee was reopened by issue of notice u/s. 148 of the Act and served on the assessee. Assessee submitted the return of income in compliance to...