https://www.taxtmi.com/caselaws?id=461366 The ITAT Mumbai dismissed the revenue's appeal regarding an addition under section 68 for share transactions in penny stock companies. The tribunal held that mere suspicion of investment in alleged penny stock cannot justify addition under section 69B without corroborative evidence. The AO failed to inquire about payments to recognized brokers or produce material evidence proving bogus transactions, relying only on information that the company was a penny stock. Following precedent from Kamalesh Mohandas Lakhwani case involving similar transactions, the tribunal found no grounds to hold the assessee liable for the investment. en-us Fri, 17 May 2024 00:00:00 +0530 Tue, 01 Apr 2025 14:32:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=461366 The ITAT Mumbai dismissed the revenue's appeal regarding an addition under section 68 for share transactions in penny stock companies. The tribunal held that mere suspicion of investment in alleged penny stock cannot justify addition under section 69B without corroborative evidence. The AO failed to inquire about payments to recognized brokers or produce material evidence proving bogus transactions, relying only on information that the company was a penny stock. Following precedent from Kamalesh Mohandas Lakhwani case involving similar transactions, the tribunal found no grounds to hold the assessee liable for the investment. Case-Laws Income Tax Fri, 17 May 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=461366