HC upholds ITAT decision deleting addition of LTCG on penny stock

PCIT Vs Ziauddin A Siddique (Bombay High Court) In a recent judgment, the Bombay High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT) regarding the treatment of Long-Term Capital Gains (LTCG) arising from penny stock transactions. The case, PCIT Vs Ziauddin A Siddique, involved a dispute over the addition of LTCG amounting to Rs. 1,03,33,925/- by the Assessing Officer under section 68 of the Income Tax Act, 1961. The HC’s affirmation of the ITAT’s decision sheds light on the legality and interpretation of tax laws concerning penny stock transactions. Analysis:...