Addition of ₹21,72,300/- made by AO u/s 68 was justified in case of sham transaction of Penny stocks share sale

Krutik Ashokkumar Parikh-HUF Vs ITO (ITAT Ahmedabad) Conclusion: Addition of ₹21,72,300/- made by AO under section 68 was justified as sale of Karma ISP penny stock shares was a sham transaction and non-genuine which was being used in tax evasion practices to convert unaccounted income into exempt income. Held: Assessee, had originally declared an income of Rs. 1,90,780/-. AO reopened the assessment under section 147 after receiving information that the HUF had traded in a penny stock, Karma ISP. Assessee did not submit a revised return in response to the notice. During reassessment, AO note...