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Penny Stock LTCG Allegation Dismissed; Revenue Lacked Assessee-Specific Evidence

TaxGuru
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Summary

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  • The Tribunal has rejected allegations of Long-Term Capital Gains (LTCG) related to penny stocks, stating the Revenue lacked assessee-specific evidence.
  • It determined that the addition under Section 68 could not be sustained due to the assessee's complete documentary evidence supporting share transactions.
  • The ruling emphasized that the Assessing Officer failed to provide any cogent material to counter this evidence.
  • This decision may set a precedent for future cases involving LTCG claims and the burden of proof on tax authorities.

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