No Exempt Gain, Only Genuine Loss – ITAT Rejects Penny Stock Allegation Allows ₹26.13L Business Loss

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...