Penny Stock LTCG Held Genuine – ITAT Mumbai Deletes ₹85.05 Lakh Addition

Suresh Maheshwari Vs DCIT (ITAT Mumbai)

Assessee, a Chartered Accountant, declared LTCG of ₹85.05 lakh on sale of M/s Pine Animation Ltd. shares & claimed exemption u/s 10(38). AO, relying solely on Kolkata Investigation Wing’s report alleging Pine Animation was a penny stock used for accommodation entries, rejected the claim & added the LTCG & ₹21,592 commission as unexplained income. CIT(A) confirmed the addition.

Before Tribunal, Assessee showed complete evidence- purchase bills, demat statements, contract notes, banking proofs, & that transactions w

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