No Section 68 Addition for Alleged Bogus LTCG Without AO’s Independent Verification

Annu Anil Agrawal Vs ACIT (ITAT Mumbai) No addition u/s 68 on account of alleged bogus LTCG without AO’s independent verification or a rational connection to income escapement Conclusion: AO could not rely solely on borrowed information without independent verification or a rational connection to income escapement. Long-term capital gains on sale of “penny” stocks could not be treated as bogus & unexplained cash credit if the documentation was in order & there was no allegation of manipulation by SEBI or the BSE. Therefore, addition under section 68 on account of alle...