ITAT Upholds Assessee’s Innocence: ‘Penny Stock’ Transaction Deemed Legitimate

Farzad Sheriar Jehani Vs ITO (ITAT Mumbai) Farzad Sheriar Jehani Vs ITO (ITAT Mumbai): A Victory for the Unsuspecting Investor in Penny Stocks Introduction: In a recent case before the Income Tax Appellate Tribunal (ITAT) Mumbai, Farzad Sheriar Jehani contested an order by the Commissioner of Income Tax (Appeals) challenging additions made to his income for the Assessment Year 2014-15. The dispute centered around the alleged dubious transaction involving penny stocks, specifically the sale of 7550 shares of “Kappac Pharma.” Background: Farzad Sheriar Jehani, an individual and partn...