ITAT Deletes Tax Addition Because Long-Term Share Investment Was Genuine, Not Penny Stock

Elara India Opportunities Fund Limited Vs DCIT (International Taxation) (ITAT Mumbai) The Income Tax Appellate Tribunal, Mumbai partly allowed an appeal filed against an order passed under Section 144C(5) of the Income Tax Act, 1961 by the Dispute Resolution Panel for Assessment Year 2019–20. The dispute arose from additions made by the tax authorities after treating gains from the sale of shares of International Conveyors Limited (ICL) as a bogus transaction involving a “penny stock”. The assessee is a Foreign Portfolio Investor registered with the Securities and Exchange Board of India...