Penny Stock Gains Upheld as Genuine – ITAT Quashes Reopening for Lack of Fresh Material

ACIT Vs Sidharth Ratanlal Bafna (ITAT Pune) Penny Stock Gain Found Genuine, Reopening Held Invalid- ITAT Pune Upholds CIT(A)’s Relief A search was conducted on Bafna Group on 10-09-2014. For A.Y. 2015-16, assessment was originally completed u/s 153A r.w.s 143(3) accepting returned income. Later, based on information from the Investigation Wing, Nashik alleging bogus LTCG from penny-stock PFL Infotech Ltd., AO reopened assessment u/s 147 & disallowed exemption of ₹7.68 crore claimed u/s 10(38), further adding ₹23 lakh as alleged commission u/s 69C. AO relied heavily on statements of N...