ITAT Deletes ₹8.01 Crore Section 68 Addition on Penny Stock Transactions

Sejal Jignesh Shah Vs ITO (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT) Mumbai ruled in favor of Sejal Jignesh Shah in an appeal against the Commissioner of Income Tax (Appeals), NFAC, Delhi, concerning the Assessment Year 2012-13. The primary dispute revolved around the reopening of assessment proceedings under Section 147 and the addition of ₹8.01 crore under Section 68 of the Income Tax Act. The Assessing Officer (AO) alleged that the assessee engaged in penny stock transactions with M/s Banas Finance Ltd., which was flagged for facilitating tax-exempt capital gains through stock pri...