ITAT Quashes Reassessment for Penny Stock Loss Lacking Direct Nexus

Navneetbhai Ramanlal Patel Vs ITO (ITAT Ahmedabad) ITAT Ahmedabad: Quashes reassessment absent specific averment in ‘reasons’ recorded u/s 147 on alleged penny-stock Summary: The ITAT Ahmedabad quashed the reassessment initiated under Section 147 for AY 2016–17 on alleged penny-stock losses, holding that the reopening was legally unsustainable due to the absence of any specific or tangible material. The Tribunal found that the “reasons to believe” recorded by the Assessing Officer did not identify any particular scrip, transaction, or evidence showing that the claimed loss of ₹46...