https://www.taxtmi.com/caselaws?id=756517 ITAT Mumbai allowed the assessee's appeal against additions made under sections 68 and 69C regarding alleged bogus LTCG from penny stock sales. The CIT(A) had dismissed the appeal relying on Calcutta HC's decision in Swati Bajaj case. However, ITAT noted conflicting HC decisions and applied the principle from Vegetable Products case that favorable construction should be adopted for the assessee. The tribunal found the assessee had established the genuineness of share sale proceeds, deleted the section 68 addition, and allowed the section 10(38) exemption claim. The consequential 5% commission addition under section 69C was also deleted. en-us Tue, 30 Jul 2024 00:00:00 +0530 Wed, 10 Jun 2026 15:08:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=756517 ITAT Mumbai allowed the assessee's appeal against additions made under sections 68 and 69C regarding alleged bogus LTCG from penny stock sales. The CIT(A) had dismissed the appeal relying on Calcutta HC's decision in Swati Bajaj case. However, ITAT noted conflicting HC decisions and applied the principle from Vegetable Products case that favorable construction should be adopted for the assessee. The tribunal found the assessee had established the genuineness of share sale proceeds, deleted the section 68 addition, and allowed the section 10(38) exemption claim. The consequential 5% commission addition under section 69C was also deleted. Case-Laws Income Tax Tue, 30 Jul 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=756517