Penny Stock Addition Deleted: ITAT Voids Section 153A Assessment Without Incriminating Material

DCIT Vs Bajrang Lal Aggarwal (ITAT Delhi)

ITAT Delhi Upholds Deletion of Penny Stock Addition — No Incriminating Material Found in Search; Section 153A Cannot Be Invoked in Unabated Year

A search u/s 132 was conducted on 19.12.2019 in the Stonex Group cases & a warrant was executed on the locker of the Assessee, Bajrang Lal Aggarwal. In response, assessment u/s 153A was completed making an addition of ₹19,20,877/- u/s 68, treating the Assessee’s long-term capital gain (LTCG) on shares of Alankit Ltd. as unexplained credit.

CIT(A) deleted the addition holding

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