Penny Stock Transactions Found Genuine: ITAT Deletes ₹1 Cr Addition Relying on SEBI Report and...

The ITAT (Income Tax Appellate Tribunal) has deemed "penny stock transactions genuine," deleting a ₹1 crore addition by relying on a SEBI report and a sister case precedent. The tax authorities had added the amount to the assessee's income, suspecting bogus capital gains from penny stock trading. However, the ITAT noted that the transactions were conducted through recognized stock exchanges with proper documentation. Citing a SEBI report confirming no price manipulation and following a consistent ruling in a related case, the tribunal concluded that the transactions were legitimate, thus providing relief to the assessee.