Alleged Bogus LTCG from penny stocks: ITAT Kolkata invalidates reassessment due to lack of tangible evidence

Pradip Kumar Jajodia (HUF) Vs ITO (ITAT Kolkata) The Income Tax Appellate Tribunal (ITAT) Kolkata recently delivered its judgment in the case of Pradip Kumar Jajodia (HUF) vs. ITO, addressing the validity of reassessment proceedings initiated under Section 147/148 of the Income Tax Act, 1961. The case revolved around alleged bogus Long-Term Capital Gains (LTCG) on penny stock transactions and the denial of related exemptions by the Assessing Officer (AO). The Tribunal ruled in favor of the assessee, emphasizing the lack of tangible material to justify reopening the assessment. The reassessment...