https://www.taxtmi.com/caselaws?id=462747 ITAT Mumbai allowed the assessee's appeal against addition u/s 68 for alleged bogus penny stock transactions. The tribunal found that sample examination of demat account records confirmed genuine delivery-based trading in penny stocks, with actual share transfers reflected in the assessee's demat account. The assessee suffered legitimate business losses of Rs.9.65 crores from share trading, including Rs.1.98 crores from penny stocks. The AO failed to properly examine transaction documents before concluding bogus entries existed. The tribunal emphasized that trading in penny stocks alone doesn't establish bogus transactions, requiring detailed investigation of each case's specific facts rather than predetermined notions. en-us Fri, 08 Mar 2024 00:00:00 +0530 Sat, 12 Jul 2025 23:06:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=462747 ITAT Mumbai allowed the assessee's appeal against addition u/s 68 for alleged bogus penny stock transactions. The tribunal found that sample examination of demat account records confirmed genuine delivery-based trading in penny stocks, with actual share transfers reflected in the assessee's demat account. The assessee suffered legitimate business losses of Rs.9.65 crores from share trading, including Rs.1.98 crores from penny stocks. The AO failed to properly examine transaction documents before concluding bogus entries existed. The tribunal emphasized that trading in penny stocks alone doesn't establish bogus transactions, requiring detailed investigation of each case's specific facts rather than predetermined notions. Case-Laws Income Tax Fri, 08 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=462747