ITAT Jodhpur: Penny Stock LTCG Cannot Be Treated as Bogus Merely on General Investigation Report

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Last updated: 11 August 2026
Quick Summary
The Income Tax Appellate Tribunal (ITAT) in Jodhpur has ruled that long-term capital gains (LTCG) from penny stock transactions cannot be deemed bogus simply because the shares were part of a general investigation report. The tribunal found that the Assessing Officer (AO) had not presented specific evidence linking the assessee to any wrongdoing. The transactions were conducted through banking channels, supported by demat records, and the shares were regularly traded, leading the ITAT to allow the assessee's appeal.

Court :
Jodhpur

Brief :
The Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, in Ram Niwas Chouhan v. Income Tax Officer, ITA No. 182/Jodh/2024 for AY 2015-16, pronounced on 7 August 2026, deleted an addition of ₹28,52,412 made under Section 68 of the Income Tax Act, 1961, in respect of long-term capital gain from sale of shares.

Citation :
ITA No. 182/Jodh/2024

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