ITAT Mumbai upholds penny-stock loss as genuine – Revenue’s addition deleted

ACIT Vs Paru Securities Pvt. Ltd. (ITAT Mumbai)

ITAT Mumbai upholds penny-stock loss as genuine – Revenue’s addition deleted

Assessee, a private limited company engaged in regular trading of shares & securities through BSE/NSE, filed return for AY 2012-13 declaring nil income after set-off of brought-forward business loss. During scrutiny, AO received Investigation Wing information alleging that Assessee had incurred a loss of ₹3,91,126 from sale of shares of M/s PFL Infotech Ltd., a penny stock used for accommodation entries. AO treated the loss as bogus, disallow

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