https://www.taxtmi.com/caselaws?id=457702 The ITAT Mumbai reversed additions made u/s 68 and denial of exemption u/s 10(38) for alleged bogus long-term capital gains. The AO had added 2% of transaction amount as unexplained expenditure u/s 69C based solely on Kolkata Investigation Wing report identifying the scrip as penny stock. The tribunal held that mere identification of a scrip as penny stock does not render all transactions bogus. Revenue failed to prove any link between the assessee and directors involved in price manipulation or provide cogent evidence controverting assessee's documentary proof. The addition was based on suspicion without legal evidence, violating the principle that revenue must discharge onus of proof. en-us Tue, 13 Dec 2022 00:00:00 +0530 Wed, 25 Sep 2024 23:06:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=457702 The ITAT Mumbai reversed additions made u/s 68 and denial of exemption u/s 10(38) for alleged bogus long-term capital gains. The AO had added 2% of transaction amount as unexplained expenditure u/s 69C based solely on Kolkata Investigation Wing report identifying the scrip as penny stock. The tribunal held that mere identification of a scrip as penny stock does not render all transactions bogus. Revenue failed to prove any link between the assessee and directors involved in price manipulation or provide cogent evidence controverting assessee's documentary proof. The addition was based on suspicion without legal evidence, violating the principle that revenue must discharge onus of proof. Case-Laws Income Tax Tue, 13 Dec 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=457702