INCOME TAX23 Sept 2026
Taxman called a penny-stock gain bogus after ₹70,000 became ₹1.93 crore, here’s what Mumbai ITAT said | Mint
Mumbai's Income Tax Appellate Tribunal deleted a ₹1.93 crore tax addition on Toyam Industries share gains. The investor bought 35,000 shares for ₹70,000 and sold them through a recognised stock exchange. The tax office called the profit bogus but showed no specific evidence linking him to price manipulation. This matters if your own share sale is ever questioned. Keep your contract notes, demat and bank records safe.
Key Statutory Highlights
- The Mumbai ITAT deleted the ₹1.93 crore addition made under Section 68 of the Income Tax Act in its order dated 4 September 2026.
- The taxpayer had bought 35,000 shares of Toyam Industries in April 2013 for ₹70,000 and sold them between September 2014 and February 2015.
- The tribunal noted that the Revenue did not produce specific material showing the taxpayer himself was involved in price rigging or manipulation of the scrip.
Actionable Advice for Taxpayers / Founders:If you have sold shares through a recognised stock exchange, keep your contract notes, demat statements and bank records ready. If the tax office questions your gain, this paperwork can help you explain the transaction, though every case depends on its own facts.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
Share: