Penny Stock Business Loss Cannot Be Treated as Bogus LTCG/STCL: Revenue Appeal Dismissed for Low Tax Effect

DCIT Vs Satya Prakash Gupta (ITAT Delhi) ITAT Delhi ruled that business losses from penny stock trading cannot be classified as bogus Short-Term or Long-Term Capital Loss (STCL/LTCG). The Revenue’s appeal was dismissed due to low tax effect, reaffirming that CBDT Circular exceptions apply only to genuine bogus capital gains/losses. Case Summary and Facts The appeal before the Income Tax Appellate Tribunal (ITAT), Delhi Bench, concerned the Revenue (Deputy Commissioner of Income Tax) challenging the order of the Commissioner of Income Tax (Appeals) in the case of DCIT Vs Satya Prakash Gupta ...