https://www.taxtmi.com/caselaws?id=756198 ITAT Kolkata allowed the assessee's appeal against disallowance of trading losses in penny shares. The AO had treated the transactions as bogus, arguing they lacked commercial prudence being conducted at year-end. However, ITAT found the AO failed to prove the transactions were bogus and noted selective interpretation - accepting gains as genuine while rejecting losses. The tribunal observed that millions of shares were traded in the market with assessee trading only thousands, negating market manipulation allegations. Following precedent in Namokar Builders case, ITAT deleted the addition and granted consequential relief. en-us Tue, 23 Jul 2024 00:00:00 +0530 Mon, 29 Jul 2024 09:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756198 ITAT Kolkata allowed the assessee's appeal against disallowance of trading losses in penny shares. The AO had treated the transactions as bogus, arguing they lacked commercial prudence being conducted at year-end. However, ITAT found the AO failed to prove the transactions were bogus and noted selective interpretation - accepting gains as genuine while rejecting losses. The tribunal observed that millions of shares were traded in the market with assessee trading only thousands, negating market manipulation allegations. Following precedent in Namokar Builders case, ITAT deleted the addition and granted consequential relief. Case-Laws Income Tax Tue, 23 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756198