Penny Stock Allegation fails without direct evidence: ITAT deletes addition on Exempt LTCG

Daljit Batra Vs ITO (ITAT Delhi) Conclusion: Where assessee substantiated purchase, holding and sale of shares of YICL through documentary evidence, DEMAT records, contract notes, STT payments and banking transactions, and Revenue failed to establish any nexus between assessee and alleged price-rigging operators, exemption under section 10(38) could not be denied merely on suspicion or penny-stock allegations. Accordingly, additions under sections 68 and 69C were deleted. Held: Assessee, an individual, filed his return declaring total income of ₹22.29 lakh. During scrutiny assessment, the As...