ITAT Deletes LTCG Addition as Mere Suspicion Cannot Replace Evidence in Penny Stock Cases

ITO Vs Neelam Mor (ITAT Mumbai) In this case, the Revenue challenged the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), which had deleted an addition of Rs. 13,57,75,985 made under Section 68 of the Income-tax Act, 1961. The addition related to long-term capital gains (LTCG) claimed as exempt under Section 10(38) on the sale of shares of Pine Animation Pvt. Ltd., which the Assessing Officer (AO) treated as bogus penny stock transactions. The assessee had acquired shares of Pine Animation Pvt. Ltd. through preferential allotment in March 2013 by inves...