Penny Stock Addition Fails: ITAT Says Suspicion Cannot Replace Evidence

Ronak Ashvin Sanghavi Vs ITO (ITAT Mumbai) The Mumbai ITAT deleted additions made against Ronak Ashvin Sanghavi on account of alleged bogus Long-Term Capital Gains (LTCG) from shares of GFL Finance India Ltd., holding that the Revenue had failed to produce any cogent evidence linking the assessee with any price manipulation or accommodation entry arrangement. The assessee had earned LTCG of ₹12.25 lakh on sale of shares purchased through a recognised stock exchange and claimed exemption under section 10(38). Based on information received from the Kolkata Investigation Wing regarding alleged ...