Income Tax : ITAT Ahmedabad confirms Section 68 addition of ₹93.92 lakh for bogus LTCG from Kushal Tradelink shares, rejecting the appeal bas...
Income Tax : Penny stocks, often associated with small, illiquid companies, have been a subject of concern due to their susceptibility to price...
Income Tax : Introduction: The assessee has been taking a common argument against the addition on account of penny stock. The said argument rev...
Income Tax : The provision for exemption of long term capital gains from shares requiring payment of securities transaction tax has been taken ...
Income Tax : It is a very well-known fact that High court only entertains question of law and Income tax Appellate Tribunal (ITAT) is the last ...
Income Tax : The ITAT Ahmedabad held that reassessment under Section 147 was invalid because the Assessing Officer reopened the case for fictit...
Income Tax : The Tribunal ruled that a genuine share transaction resulting in a short-term loss cannot automatically be treated as a make-belie...
Income Tax : The ITAT Surat held that abnormal price rise in a penny stock and surrounding circumstances justified treating claimed LTCG as une...
Income Tax : The courts upheld LTCG exemption under Section 10(38) after finding that the Revenue failed to produce evidence linking the assess...
Income Tax : The High Court ruled that reopening under Sections 147 and 148 was unsustainable because the Assessing Officer’s reasons amounte...
ITAT Delhi dismissed the appeal challenging PCIT’s exercise of jurisdiction under Section 263, holding that the Commissioner can revise orders even when the matter is pending before CIT(A). Key takeaway: jurisdiction under Sec. 263 extends to unresolved appeals.
ITAT Ahmedabad confirms Section 68 addition of ₹93.92 lakh for bogus LTCG from Kushal Tradelink shares, rejecting the appeal based on human probability test.
The ITAT Ahmedabad reversed the CIT(A)’s deletion, upholding the addition of ₹6.73 lakh under Section 69A for bogus Long-Term Capital Gain from Safal Herbs Ltd. shares. The Tribunal ruled that the sudden investment in the obscure scrip, coupled with an unreasonable price rise, defied commercial logic and was an accommodation entry.
The ITAT Delhi upheld the deletion of an addition for alleged penny stock LTCG under Section 68, ruling that an assessment for an unabated year under Section 153A requires incriminating material found during the search. Since the addition was based on general analysis, not seized documents, the Revenues appeal was dismissed. The key takeaway affirms the Supreme Courts mandate that completed assessments cannot be disturbed without specific incriminating evidence.
ITAT Ahmedabad upheld adding Long-Term Capital Gain (LTCG) as unexplained income under Section 68. The Tribunal ruled that the genuineness of penny stock transactions must be judged by the test of human probabilities.
Rejecting assessee’s plea of invalid reopening, Tribunal ruled that minor clerical mistakes in reasons recorded under Section 147 do not vitiate proceedings if substantive material exists. Information disseminated through Insight Portal was sufficient to establish AO’s belief.
The ITAT Mumbai deleted an addition of Rs.85.05 lakh, ruling that Long-Term Capital Gain (LTCG) on the sale of M/s Pine Animation Ltd. shares was genuine. The Tribunal held that demat-backed transactions through banking channels cannot be rejected merely based on a general Investigation Wing report.
ITAT Delhi deleted a ₹47 lakh bogus LTCG addition, holding that ‘human probability’ cannot override transactions conducted through stock exchange, demat, and banking channels. Mere high profit does not make a transaction bogus.
ITAT Pune held that reopening based on old investigation data was invalid where transactions were already verified under Section 153A. The Tribunal found the penny stock gains genuine as supported by Demat, bank, and STT records.
ITAT Delhi dismissed Revenue’s appeal, upholding CIT(A)’s deletion of addition from a share sale, ruling the transaction genuine as no evidence proved the shares were ‘penny stock’ or rigged.
