Profit on Sale of penny stock/Shares- ITAT Deletes Addition

DCIT Vs Jainam Investments (ITAT MUMBAI) Under this issue the revenue has challenged the deletion of disallowance of Rs.4,71,19,785/- on of sale shares of M/s. Mahavir Advanced Remedies. The Ld. Representative of the revenue has argued that the CIT(A) has wrongly deleted the disallowance of Rs.4,71,19,785/-, therefore, the finding of the CIT(A) is not justifiable, hence, is liable to be set aside. On appraisal, we noticed that the CIT(A) has relied upon the decision of the Hon’ble Calcutta High Court in the case of M/s. Classic Growers Ltd. Vs. CIT (ITA. No. 129 of 2012 (Calcutta), and the d...