COURT: | ITAT Mumbai |
CORAM: | Joginder Singh (JM), Sanjay Arora (AM) |
SECTION(S): | 68 |
GENRE: | Domestic Tax |
CATCH WORDS: | Penny Stocks, unexplained cash credit |
COUNSEL: | Keshav Bhujle |
DATE: | March 27, 2015 (Date of pronouncement) |
DATE: | April 15, 2015 (Date of publication) |
AY: | 2006-07 |
FILE: | Click here to view full post with file download link |
CITATION: | |
S. 68: Despite documentary evidence and broker’s confirmation, genuineness of penny stock transactions has to be determined on the basis of ‘preponderance of human probabilities’. If assessee is unable to explain ‘intriguing’ facts and circumstances, genuineness of transaction cannot be accepted |
Firstly, documentary evidences, in the face of unusual events, as prevailing in the instant case, and without any corroborative or circumstantial evidence/s, cannot be regarded as conclusive. Two, the preponderance of probabilities only denotes the simultaneous existence of several ‘facts’, each probable in itself, albeit low, so as to cast a serious doubt on the truth of the reported ‘facts’, which together make up for a bizarre statement, leading to the inference of collusiveness or a device set up to conceal the truth, i.e., in the absence of credible and independent evidences
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