https://www.taxtmi.com/caselaws?id=755489 ITAT Mumbai ruled in favor of the assessee in a penny stock transaction case involving addition under section 68. The AO reopened assessment based solely on Investigation Department information without independent application of mind. Despite Revenue verifying company directors and recording statements, no nexus was established between the assessee and price rigging. The assessee provided all relevant documents including registers, bank statements, demat accounts, and bills, which were never questioned for veracity. The addition relied entirely on indirect evidence from investigation reports while bypassing direct evidence. Even after invasive search action, no material evidence supported the theory of unaccounted money routing. The tribunal found the addition unsustainable and decided in favor of the assessee. en-us Thu, 30 May 2024 00:00:00 +0530 Fri, 12 Jul 2024 11:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=755489 ITAT Mumbai ruled in favor of the assessee in a penny stock transaction case involving addition under section 68. The AO reopened assessment based solely on Investigation Department information without independent application of mind. Despite Revenue verifying company directors and recording statements, no nexus was established between the assessee and price rigging. The assessee provided all relevant documents including registers, bank statements, demat accounts, and bills, which were never questioned for veracity. The addition relied entirely on indirect evidence from investigation reports while bypassing direct evidence. Even after invasive search action, no material evidence supported the theory of unaccounted money routing. The tribunal found the addition unsustainable and decided in favor of the assessee. Case-Laws Income Tax Thu, 30 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=755489