New Delhi, Sept. 23 -- A Mumbai investor's Rs.70,000 investment in Toyam Industries Ltd turned into a Rs.1.93 crore long-term capital gain. The tax department treated the gain as an accommodation entry linked to alleged manipulation in the stock. The Mumbai Income Tax Appellate Tribunal, however, found that the department had not established a specific link between the investor and the alleged manipulation.

The ruling is significant for investors because the tribunal focused less on whether the stock itself had been investigated and more on what evidence existed against the individual taxpayer. In its 4 September 2026 order, the Mumbai bench deleted the Rs.1.93 crore addition made under Section 68 of the Income Tax Act.

Sanjaykumar Meht...