ITAT Allows Set-Off of Short Term Capital Loss in Penny Stock Case

Balram Chainrai Vs International Taxation (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai recently adjudicated on an appeal filed by Balram Chainrai against an assessment order concerning the disallowance of a short-term capital loss (STCL) and an addition under Section 69A of the Income Tax Act, 1961. The core of the dispute revolved around the genuineness of share transactions involving M/s Gini Silk Mills Ltd., which the revenue authorities had categorized as a “penny stock.” Background of the Case: Balram Chainrai, an individual and non-resident Indian based in Ho...