Tribunal held that LTCG from penny stocks cannot be treated as bogus if the documentation is in order and no fault is found by the AO. Followed CIT v. Lavanya Land Pvt ltd (2017) 83 taxmann.com 161 (Bom) (HC) Ratio in Sanjay Bimalchand Jain (ITA No 18 of 2017 dt 10 -04 2017 ( 2018)89 taxmann.com 196 ,distinguished. (ITA No. ITA No.2351/Kol/2017, dt. 09.08.2019)( AY. 2014-15)
Chandra Prakash Jhunjhunwala v. DCIT ( 2019) 201 TTJ 831 /( 2020) 181 ITD 185/ 188 DTR 108(Kol)(Trib), www.itatonline.org
S. 45 :Capital gains- -Penny stocks- Long term capital gains from penny stocks cannot be treated as bogus if the documentation is in order and no fault is found by the AO- Addition is deleted. [ S.38, 111A ]