No addition u/s 68 and 69C for Penny Stock case without any evidence

Sangeeta Kalpesh Chawala Vs ITO (ITAT Mumbai) Conclusion: Mere involvement in a flagged scrip, in absence of concrete evidence of manipulation or unaccounted funds, could not justify taxing bonafide transactions. Therefore, the additions under sections 68 and 69C were unsustainable. Held: AO reopened the case under section 147 and added ₹28.27 lakh as unexplained cash credit under section 68, along with a 2% commission disallowance of ₹56,546 under section 69C—on the assumption that the gains were mere entries in a penny stock scam. It was held that additions made by AO and sustained by ...