No Penny Stock LTCG Addition if no Evidence Linking Assessee to Share Price Manipulation

Chief Commissioner of Income tax Vs Nilesh Jain (HUF) (Madhya Pradesh High Court) The Madhya Pradesh High Court adjudicated a batch of 33 appeals filed by the Revenue under Section 260A of the Income-tax Act, 1961, challenging orders of the Income Tax Appellate Tribunal (ITAT) which had deleted additions made on account of alleged bogus Long Term Capital Gains (LTCG). The appeals arose from a common issue involving transactions in shares of a listed company, which were alleged by the Revenue to be penny stock transactions used to claim exempt LTCG under Section 10(38). The Assessing Officer ha...