https://www.taxtmi.com/highlights?id=93782 ITAT allowed the assessee's appeal, holding that the short-term capital loss of Rs.2,94,99,567 arising from sale of shares in the company (renamed during the year) was genuine trading loss and not a contrived adjustment entry. The Tribunal found the assessee to be a regular investor and trader in quoted and unquoted securities, noted supporting documentary evidence and prior trading activity, and rejected the AO's reliance on an external report characterising the scrip as penny stock without proper analysis of submitted records. Consequently the loss was held allowable for set-off against short-term capital gains and the additions made by the AO were deleted. en-us Sat, 01 Nov 2025 08:17:02 +0530 Sat, 01 Nov 2025 08:17:03 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=93782 ITAT allowed the assessee's appeal, holding that the short-term capital loss of Rs.2,94,99,567 arising from sale of shares in the company (renamed during the year) was genuine trading loss and not a contrived adjustment entry. The Tribunal found the assessee to be a regular investor and trader in quoted and unquoted securities, noted supporting documentary evidence and prior trading activity, and rejected the AO's reliance on an external report characterising the scrip as penny stock without proper analysis of submitted records. Consequently the loss was held allowable for set-off against short-term capital gains and the additions made by the AO were deleted. Highlights Income Tax Sat, 01 Nov 2025 08:17:02 +0530 https://www.taxtmi.com/highlights?id=93782