Business Trading in Shares Cannot Be Taxed u/s 68 – Penny Stock Allegation Fails

ITO Vs Everfine Alloys Private Limited (ITAT Mumbai) Assessees were engaged in trading of alloys, shares, derivatives & mutual funds. Their books consistently treated shares as inventory, with trading income offered as business income. Substantial trading turnover was reported – ₹809.59 crores (A.Y. 2013–14), ₹52.39 crores (A.Y. 2014–15) & ₹37.40 crores (A.Y. 2015–16). AO reopened assessments relying on Investigation Wing’s report on Naresh Jain group, alleging manipulation of Nysaa scrip used for accommodation entries. Based on third-party statements & non-response...