https://www.taxtmi.com/caselaws?id=763797 The ITAT Mumbai held that reassessment proceedings initiated solely based on an investigation wing report identifying shares as penny stocks, without considering the assessee's business nature or prior scrutiny inquiries, cannot be sustained. The AO's addition under section 68 treating sale consideration as unexplained income was improper, as no reference was made to quoted share prices and the assessee had actually booked business losses. The CIT(A)'s observations about steep price rises were unfounded without supporting evidence. The reassessment initiation and subsequent addition were both held invalid, and the assessee's appeal was allowed. en-us Tue, 05 Nov 2024 00:00:00 +0530 Sat, 28 Dec 2024 08:30:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=763797 The ITAT Mumbai held that reassessment proceedings initiated solely based on an investigation wing report identifying shares as penny stocks, without considering the assessee's business nature or prior scrutiny inquiries, cannot be sustained. The AO's addition under section 68 treating sale consideration as unexplained income was improper, as no reference was made to quoted share prices and the assessee had actually booked business losses. The CIT(A)'s observations about steep price rises were unfounded without supporting evidence. The reassessment initiation and subsequent addition were both held invalid, and the assessee's appeal was allowed. Case-Laws Income Tax Tue, 05 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=763797