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No Exempt Gain, Only Genuine Loss – ITAT Rejects Penny Stock Allegation Allows ₹26.13L Business Loss
Case Law Details
- Case Name
- Facts Tradelink Private Limited Vs ITO (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Related Assessment Year
- 2018-19
- Courts
- All ITAT, ITAT Mumbai
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Facts Tradelink Private Limited Vs ITO (ITAT Mumbai)
The case was reopened based on information from search on Naresh Jain, who was found to run a syndicate providing bogus LTCG/LTCL entries through penny stock scrips such as Nyssa Corporation Ltd. AO alleged that the Assessee too availed bogus loss of ₹26,13,000/- in Nyssa scrip and denied carry forward of the loss, treating it as accommodation entry.
Assessee argued that:
It is not an investor but a trader in shares.
It did not claim any LTCG exemption u/s 10(38).
The loss was claimed as business loss, not capital loss.
All trades were do...
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