LTCG on Penny Stocks: Report Not Before AO Can’t Make Order Prejudicial to Revenue

Usha Devi Modi Vs ITO (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) Kolkata recently addressed a case involving Usha Devi Modi, contesting the Principal Commissioner of Income Tax’s (PCIT) decision under Section 263 of the Income Tax Act, 1961. The case centers on the claim of Long-Term Capital Gain (LTCG) exemption under Section 10(38), stemming from transactions in penny stocks. The ruling highlights critical aspects of the assessment process and revisional powers under the Act. Background of the Case The dispute arises from the PCIT’s revision of an assessment order issued by ...