Addition for LTCG on Sale of Penny Stock without Cogent evidence is invalid

PCIT Vs Karuna Garg (Delhi High Court)

PCIT states that ITAT has erred in deleting the additions on account of bogus Long-Term Capital Gain on sale of penny stock company namely M/s Goldline International Finvest Ltd. on the ground that the assessing officer has not made independent enquiry.

ITAT held that In the absence of any such material that could support the case put forth by the Appellant, the additions cannot be sustained.

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