Bogus Share Deals: Section 68 Addition Limited to 2% Commission

Zany Share Trading Pvt. Ltd. Vs ITO (ITAT Mumbai) Bogus Share Transactions: ITAT Mumbai Restricts Section 68 Addition to 2% Commission for Conduit Company The Mumbai ITAT (G-Bench) partly allowed the appeal of the assessee for AY 2010-11, holding that while the share transactions were non-genuine and pre-arranged accommodation entries, the assessee—being merely a conduit entity in a layered structure—could not be taxed on the entire value of the alleged short-term capital loss and gain under Section 68. The Tribunal noted that the assessee had disclosed bogus short-term capital loss of ₹...