Penny Stock LTCG Not Bogus Based Only on Investigation Reports: ITAT Ahmedabad

ITO Vs Ice Worth Reality LLP (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad, adjudicated appeals filed by the Revenue against orders of the Commissioner of Income Tax (Appeals) for Assessment Years 2015–16 and 2012–13 concerning additions made under Sections 68 and 69C of the Income-tax Act. For AY 2015–16, the assessee, an LLP engaged in civil contracting, reported Long Term Capital Gain (LTCG) on sale of shares of Sunrise Asian Ltd., claimed as exempt under Section 10(38). The Assessing Officer treated the transactions as bogus penny stock arrangements based on an...