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ITAT Delhi Deletes Penny-Stock LTCG Addition Without Assessee-Specific Evidence

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Summary

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  • The ITAT Delhi has ruled that the addition of ₹27.83 lakh as unexplained cash credit under Section 68 was unjustified without specific evidence linking the assessee to price rigging.
  • Ruchi Jain's long-term capital gains (LTCG) from Kappac Pharma Ltd. were initially challenged by the AO based on a general Investigation Wing report, but no direct nexus was established.
  • The Tribunal noted that Jain's husband had a similar transaction accepted as genuine, reinforcing the need for consistent treatment in identical cases.
  • This decision underscores that mere classification as a "penny stock" does not negate genuine transactions without concrete evidence of manipulation.

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