Surmises, Patterns Kolkata Report Cannot Override Evidence – Penny Stock Addition u/s 68 Scrapped

Kishori Pankaj Agarwal Vs ITO (ITAT Ahmedabad)

Assessee purchased 10,000 shares of Kappac Pharma Ltd (KPL) offline in 2012 & sold them through Emkay Global on the stock exchange during FY 2014-15, declaring LTCG of ₹54,82,894 u/s 10(38). AO treated KPL as a penny stock based on Investigation Wing, Kolkata report & held that LTCG was bogus, adding the entire sale proceeds u/s 68. CIT(A), NFAC confirmed the addition.

Before Tribunal, Assessee submitted that the issue was already decided in favour of her mother-in-law

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