ITAT Mumbai Overturns Penny Stock Addition

Asha Himmat Bhadra Vs DCIT (ITAT Mumbai) In a significant ruling, the Income Tax Appellate Tribunal (ITAT) Mumbai has set aside additions made under sections 68 and 69C of the Income Tax Act against taxpayer Asha Himmat Bhadra. The case revolved around the sale of shares in M/s. Splash Media (now Luharuka Media & Infra Ltd.), which the Income Tax Department had deemed a “penny stock,” leading to substantial additions to the assessee’s income for the Assessment Year 2011-12. The assessee, Asha Himmat Bhadra, had purchased 2,500 shares of Splash Media on August 19, 2009, fo...