No Addition for Off-Market Penny Stocks if Purchase is Justified & Proper Documentation is Provided

Amit Sajjan Kumar Gupta Vs DCIT (ITAT Mumbai) Summary: In Amit Sajjan Kumar Gupta vs. DCIT, the ITAT Mumbai examined whether off-market shares bought by the assessee could be classified as unexplained cash credit under Section 68 of the Income Tax Act. The assessee, an investor and trader, had purchased shares of Maa Jagdambe Tradelinks Ltd. (MJTL) off-market and later sold them through a registered stock exchange, claiming exemption on long-term capital gains. However, the Assessing Officer (AO) classified these transactions as penny stock manipulation, attributing the price increase to alleg...