https://www.taxtmi.com/caselaws?id=764309 ITAT Mumbai ruled in favor of the assessee regarding addition under section 68 for alleged bogus long-term capital gains from penny stocks. The tribunal found that the Investigation Wing's report was generalized without specific evidence linking the assessee's transactions to price manipulation schemes. The AO failed to provide material proof that the assessee's share transactions were part of manipulated activities or conducted in connivance with price riggers. The assessee retained majority shares, was a regular investor in other companies, and provided adequate documentation for transactions. The tribunal concluded that AO's reasoning based on weak company fundamentals and astronomical price increases constituted mere conjecture, following precedent from Delhi HC. en-us Mon, 09 Dec 2024 00:00:00 +0530 Tue, 07 Jan 2025 17:34:35 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=764309 ITAT Mumbai ruled in favor of the assessee regarding addition under section 68 for alleged bogus long-term capital gains from penny stocks. The tribunal found that the Investigation Wing's report was generalized without specific evidence linking the assessee's transactions to price manipulation schemes. The AO failed to provide material proof that the assessee's share transactions were part of manipulated activities or conducted in connivance with price riggers. The assessee retained majority shares, was a regular investor in other companies, and provided adequate documentation for transactions. The tribunal concluded that AO's reasoning based on weak company fundamentals and astronomical price increases constituted mere conjecture, following precedent from Delhi HC. Case-Laws Income Tax Mon, 09 Dec 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=764309