Penny Stock: No Sections 68 & 69 Additions Solely on Suspicion or General Trends

Puja Gupta Vs ITO (ITAT Delhi) Income Tax Appellate Tribunal (ITAT) Delhi heard an appeal filed by Puja Gupta against the order of the Commissioner of Income Tax (Appeals)-6, New Delhi. The case centered on the addition of ₹1,69,12,820 to Gupta’s taxable income under Section 68 of the Income Tax Act, alleging unexplained cash credit. The Assessing Officer (AO) claimed that Gupta’s transactions involving shares of Dhanleela Investment & Trading Co. Ltd. were part of a pre-arranged scheme to create artificial long-term capital gains (LTCG). Additionally, an amount of ₹5,07,385 wa...