Gujarat HC Deletes LTCG Addition as Penny Stock Allegation Was Unsupported by Evidence

PCIT Vs Mamta Rajivkumar Agarwal (Gujarat High Court) Gujarat High Court considered a tax appeal filed by the Revenue challenging the order of the Income Tax Appellate Tribunal dated 11.11.2022 for Assessment Year 2013-14. The Revenue questioned the Tribunal’s decision deleting an addition of ₹39,37,423 representing Long-Term Capital Gains (LTCG) claimed as exempt under Section 10(38) of the Income-tax Act. During assessment proceedings, the Assessing Officer noticed that the assessee had purchased 40,000 shares of Shree Nath Commercial and Finance Ltd. on 08.03.2011 for ₹8,94,323 and su...