Penny stock theory fails again – Revenue can’t rely on generic Investigation Wing reports: ITAT Mumbai

Rekha Rajesh Jogani Vs ITO (ITAT Mumbai)

Penny stock theory fails again – Revenue can’t rely on generic Investigation Wing reports- ITAT Mumbai deletes entire addition u/s 68 & 69C- No evidence, no addition – ITAT quashes ₹46 lakh bogus LTCG addition – Tribunal upholds documentary evidence

Background

Assessee, Rekha Rajesh Jogani, had declared LTCG of ₹44.52 lakh on sale of equity shares of SRK Industries Ltd., claiming exemption u/s 10(38). AO, based on Investigation Wing reports alleging penny stock manipulation, held that the LTCG was bogus,

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