No Section 68 Addition as Penny Stock Transactions Did Not Yield LTCG

ITO Vs Harin Yogeshkumar Shah (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench, dismissed an appeal filed by the Revenue, confirming the deletion of an addition of ₹1,17,538 made against the taxpayer, Harin Yogeshkumar Shah, for alleged unexplained income from penny stock trading during the Assessment Year (A.Y.) 2012-13. The Tribunal ruled that the entire basis of the addition was flawed, as the Revenue failed to prove that the taxpayer had, in fact, derived and claimed the exempt Long Term Capital Gain (LTCG) that formed the foundation for the reassessment. Backgr...